the housing crisis happened and cities were broke. There's a finance paper from the Federal Reserve which describes exactly this issue [1]. We identify five

the housing crisis happened and cities were broke. There's a finance paper from the Federal Reserve which describes exactly this issue [1]. We identify five main channels through which the housing market affects state and local tax revenues: property tax revenues, transfer tax revenues, sales tax revenues, and personal income tax revenues. We find that property tax revenues do not tend to decrease following house price declines. We conclude that the recent contraction in state and local tax revenues has been driven primarily by the general economic recession, rather than the housing market per-se. [1] https://www.federalreserve.gov/pubs/feds/2010/201049/201049pap.pdf https://www.federalreserve.gov/pubs/feds/2010/201049/201049p... (PDF)