The increase in city budgets is somewhat independent of the value of houses. If the price of every home in Chicago doubles overnight it doesn’t mean that Chicag

The increase in city budgets is somewhat independent of the value of houses. If the price of every home in Chicago doubles overnight it doesn’t mean that Chicago would require twice as much revenue to deliver city services. Property taxes are based on assessed values because they are collected relative to other property in the same jurisdiction, not on an absolute basis. Other factors should have a bigger effect. For instance if crime halved overnight, the city could reduce its policing budget and lower property taxes, regardless of property value changes.