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But then you've driven up the cost of the housing with tax. AirBnB hosts are paying property taxes and if AirBnB drives up value it's driving up property tax.
by sien 9y ago
But then you've driven up the cost of the housing with tax.
AirBnB hosts are paying property taxes and if AirBnB drives up value it's driving up property tax.
Speculative hoarding only works if there is artificial scarcity driven by overly restrictive zoning. Speculating in Dallas hasn't resulted in high profits.
Actually, editing in response to your comments. It looks like high property taxes in conjunction with low zoning regulation works. And that AirBnB has little to do with housing prices generally.
That's an interesting point that comes out of this discussion.
Rather than calling people 'leeches' and other names perhaps reasonable discussion could help.
- kspaans 9y agoHigher taxes generally reduce property prices. As the carrying costs get higher, only those who can make efficient use of property (or who really want to live there) can justify the payments. In other words, it reduces the profits of income properties (be they long term rentals or short term rentals), which reduces the demand for the properties as a source of income, thus decreasing the cost (in spite of the higher taxes!) for people who want to live there. It also reduces speculative holding of property: again because the taxes paid while the speculator waits for prices to rise make it less likely that the speculator will profit, so they will go elsewhere looking for profits.