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Gentrification effects an upward pressure on property values. Property values determine property tax. You're right, that's not technically rent, but it is one o
by quinnchr 11y ago
Gentrification effects an upward pressure on property values. Property values determine property tax. You're right, that's not technically rent, but it is one of the predominant mechanisms by which people are priced out of neighborhoods.
- yummyfajitas 11y agoIt would really suck to engage in real estate speculation and then have the value of my investment skyrocket until I sell it for a large sum of money. I sure hope that doesn't happen to me one day! Buying low and selling high, how awful.
- quinnchr 11y agoLow income households spend an exceptionally high percentage of their income on housing (http://www.lao.ca.gov/reports/2015/finance/housing-costs/housing-costs-web-resources/image/fig12.png http://www.lao.ca.gov/reports/2015/finance/housing-costs/hou...). Meaning they are particularly sensitive to price increases. So yes, it would really suck for your home value to increase a couple percent and have to move. But hey, if there's profit involved who can complain! Furthermore, most low income households who own property aren't engaging in speculation, they are simply trying to keep the property they inherited.
- frankc 11y agoMany(most?) localities have a cap on property taxes for this very reason. For instance, look at the propery taxes for 3 or 4 million dollar brownstones in Brooklyn; it's usually 5 or 6 thousand per year.