4 ms·
In a market with limited supply, taxing homes for rent will raise rents to cover the additional taxes. You don't solve a supply problem by adding taxes. If any
by dkopi 10y ago
In a market with limited supply, taxing homes for rent will raise rents to cover the additional taxes.
You don't solve a supply problem by adding taxes. If anything, that will reduce the supply even more.
- Grishnakh 10y agoNo, you need to massively jack up taxes to increase supply, and it will work. But you don't jack up taxes on homes for rent, you jack them up on the homes that aren't for rent: houses which are just sitting unoccupied. The taxes will encourage the owners to either rent them out or simply sell them off to someone who will (or who will at least live there). That increases supply.