The housing crisis is caused by property taxes being too low, particularly on land values. Banning small rentals won’t work because they’ll continue to extract rent under longer-term leases.
We already have plenty of houses. Increase taxes and their market values will drop.
Ban the ownership of single family residential properties by corporations. I don’t see a world where it makes sense for houses to be owned by companies.
This is a big one, and I’d add in an aggressive tax for owning multiple properties. Make single land ownership ~70% of what it currently is, and each additional property increases all your property tax by 300%. Couple that with getting rid of idiotic exemptions (seriously…I have a friend with parents that owned more than a hundred different properties in a semi-rural area [one that was going to become suburban soon] and paid nearly no taxes because they plunked a few cows onto each one until the development companies paid the big moolah for them) and there would be plenty of homes for everyone. Last report I remember said we had more than enough empty homes sitting around to house every homeless person multiple times over.
Many leading economist argue for land value tax only as a way to incentivize the most efficient use for our most valuable resource. If land tax was used instead of property tax, a multi-acre plot in a dense urban would be taxed just as much a multi-story apartment building that takes up the same amount of space.
The housing crisis is caused by property taxes being too low, particularly on land values. Banning small rentals won’t work because they’ll continue to extract rent under longer-term leases.
We already have plenty of houses. Increase taxes and their market values will drop.
The housing crisis is caused by many things.
Ban the ownership of single family residential properties by corporations. I don’t see a world where it makes sense for houses to be owned by companies.
This is a big one, and I’d add in an aggressive tax for owning multiple properties. Make single land ownership ~70% of what it currently is, and each additional property increases all your property tax by 300%. Couple that with getting rid of idiotic exemptions (seriously…I have a friend with parents that owned more than a hundred different properties in a semi-rural area [one that was going to become suburban soon] and paid nearly no taxes because they plunked a few cows onto each one until the development companies paid the big moolah for them) and there would be plenty of homes for everyone. Last report I remember said we had more than enough empty homes sitting around to house every homeless person multiple times over.
What would you say the housing crisis is? I’m viewing it not as a shortage, just that that market prices are too high.
Not that I strongly disagree with your suggestion, but taxes that raise money have an advantage over bans that cost money.
Many leading economist argue for land value tax only as a way to incentivize the most efficient use for our most valuable resource. If land tax was used instead of property tax, a multi-acre plot in a dense urban would be taxed just as much a multi-story apartment building that takes up the same amount of space.
See the Strongtowns article on the subject. https://www.strongtowns.org/journal/2019/3/8/if-the-land-tax-is-such-a-good-idea-why-isnt-it-being-implemented