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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I say let DC do whatever it wants with bikes. It’s neither the region’s main population nor job center anymore.[/quote]
Exactly. They are only accelerating the decline. Already losing population and commercial tax base. Accelerating anti-growth transportation policies in the face of that headwind is an interesting policy choice and I think the pace at which they are trying to do this makes clear that the proponents know these changes will not stand up to the test of time.[/quote]

So the contention that the people who are buying up 7 figure properties now are going to be financial losers. Got it.[/quote] 
In finance parlance, they are called “bag holders”. Rising rates will continue to have a drag on valuations, which has already started with average sales price declines from July to August.

Just wait for the next DC budget. CRE is taxed at 2x residential and contributes 20% of DC revenue. However, CRE tax is based on valuations from revenue generation and the CRE vacancy rate for < Class A is rising quickly and overall office occupancy across the whole region has plateaued at 47% pre-COVID, with suburban office space, particularly in Bethesda and NOVA having substantially lower vacancy than DC. Effectively the only tenants saving the DC office market right now are law firms. CRE owners are very active in challenging valuations, which means that the tax they pay is effectively mark-to-market.

How do you think DC is going to make up the revenue shortfall? Increasing income withholding or residential property taxes at this time will lead to further erosion of the tax base, which has started with the two consecutive years of population decline that are expected to continue through 2022 and perhaps longer.

But have fun in your bike lane![/quote]

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