Reply to MoCo looking at increasing income taxes for those making above $150K

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote]The property tax on housing is a major component of local government revenues and of 
consumers’ housing costs. This study uses newly available data from the 2001 Residential 
Finance Survey to investigate the incidence of the residential property tax. Of particular interest 
is the estimation and interpretation of differences in tax rates by location, property value, 
structure type, and tenure form. 
The study finds that multifamily rental housing bears an effective tax rate at least 25 
percent higher than the rate on single-family owner-occupied housing for the nation overall. The 
level of taxation, and the apartment/house differential, varies considerably from place to place. 
Much, but not all, of the differential is associated with the lower property values per unit of 
apartments compared to houses. The gap in tax rates appears to have arisen during the 1990s, as 
tax rates of apartments and houses were nearly identical in 1991. The paper concludes that the 
residential property tax, as implemented, promotes low density development, disproportionately 
burdens lower valued properties, and may impose higher taxes on apartment residents than on 
homeowners of identical incomes.[/quote]
https://www.jchs.harvard.edu/sites/default/files/w05-2.pdf[/quote]

Hey champ. Rents can only rise if the market will bear higher rents.

https://www.frbsf.org/research-and-insights/publications/economic-letter/2026/02/housing-affordability-and-housing-demand/

Input cost models neglect the role of the overall market in setting rents. The studies you cite attribute rent increases to taxes without other evidence and without ruling out other drivers of rent increases.

[/quote]

Nobody is claiming that taxes are the only factor affecting rents. Arguing that taxes don’t affect rental prices is nuts.[/quote]

+1 the article PP cited offers the following finding.related.to housing costs (not specific to rental housing): "We find that average income growth relates strongly to house price growth and that house prices generally keep pace with average income. "   It does not find that rent increases are only due to increases in household incomes or that property taxes do not affect rents. [/quote]

Ask your chat bot if rents are set based on a cost plus reasonable profit model or if rents are set based on what the market will bear. Oh wait. I already have. It offered the following finding: Apartment rents are based almost entirely on what the market will bear, not on a cost-plus-profit model.

[/quote]
Lol this is AI making people dumber in action[/quote]

lol unless you’re a major landlord or work for AOBA the joke’s on you because your misunderstanding how your rent is priced is causing you to advocate for their interests instead of your own. Even more so when it comes to policies that have a more direct effect on your rent like rent stabilization. [/quote]

Ok we'll just take you and your "chat bot" at your word over that of published studies with named authors[/quote]

Hey champ. You won’t see this one in your YIMBY echo chamber but here’s a study with named authors. It even has their pictures.

https://www.frbsf.org/research-and-insights/publications/economic-letter/2026/02/housing-affordability-and-housing-demand/

The chat bot guy was the one who who put property taxes and rent into google and then pasted long excerpts that he didn’t understand along with chat bot text summarizing this study. [/quote]

I already saw this when you first posted it. Talks about a relationship between income and housing prices. It does not examine the relationship between rents and property taxes.[/quote]

DP. Property tax is not the sole expense in renting a property. While a relationship might exist, the landlord can choose to reduce spending in property improvements and repairs. And the landlord might just need to eat the loss in terms of less profit. [/quote]

A relationship does exist. See up thread for studies showing this relationship.

Yes, markets are complicated and landlords cannot just get whatever price they want for a unit, but property taxes absolutely factor into the equation. [/quote]

Property taxes may factor into what a landlord wants to receive in rent but they have no bearing on the price the market sets for the unit. [/quote]

Just stop. You are wrong. I am a landlord and I know this business. If landlords can’t make a profit because taxes go up then units will be removed from the market and newly available units will not be placed on the rental market they will be sold since they are now unprofitable. This reduction in available rental units will increase the price of the remaining units due to limited supply and eventually the market will rise enough to sufficiently cover the tax increase and thus supply will increase and level off *at a higher price because of the cost of taxes* this is basic economics. [/quote]

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