37 ms·
the basic thesis of strongtowns is that property tax in less dense areas is not enough to cover the cost of infrastructure. I'm not sure I'm convinced by their
by leetcrew 6y ago
the basic thesis of strongtowns is that property tax in less dense areas is not enough to cover the cost of infrastructure. I'm not sure I'm convinced by their conclusion, but it's easy to see why a stretch of road in a city generates much more tax revenue than the same length of road in a suburb.
the city block I live on has about 30 rowhouses, each of them worth about $300k. a similar stretch of road out in the suburbs might have ten larger detached homes that are each worth about the same amount of money. if the property tax rate is the same in the suburb, the government is drawing on only a third of the tax receipts to maintain that same length of road.
- valuearb 6y agoLarger detached homes are individually worth far more than townhouses.
- MiroF 6y agoThe average townhouse is worth more than the average detached home because of where you find each type.
- leetcrew 6y agoif you had a large detached home in my city neighborhood, yes, it would be far more valuable. it wouldn't be more valuable than all the rowhouses you could have fit on the same lot though.
- earthboundkid 6y agoIn what jurisdiction? E.g. Baltimore: - https://www.zillow.com/homedetails/4219-Wickford-Rd-Baltimore-MD-21210/36479155_zpid/ https://www.zillow.com/homedetails/4219-Wickford-Rd-Baltimor... $489K, 2,200sqft - https://www.zillow.com/homedetails/1040-N-Calvert-St-Baltimore-MD-21202/2079632750_zpid/ https://www.zillow.com/homedetails/1040-N-Calvert-St-Baltimo... $494K, 3,900sqft ISTM, you pay more to detach your house, but most of the price goes into location+square footage.
- valuearb 6y agoExactly, land is expensive. The same quality detached home will always net a premium over same size townhome because of the additional land included.
- pnutjam 6y agoOnly in expensive urban areas, not in smaller towns and cities.
- valuearb 6y agoThe difference is less in less dense areas where land is cheaper, but the extra land associated with detached homes always adds value.
- spyckie2 6y agojust wondering, what's wrong with letting the infrastructure crumble?
- leetcrew 6y agoI'm not sure what you mean by this question. at a certain point, it deteriorates to the point where it is no longer safe/useful. then everyone with the means to do so will leave and the tax base collapses. I guess in the grand scheme of things it doesn't really matter if some nonviable communities die while others grow/start, but you probably wouldn't want that to happen to your community.
- spyckie2 6y ago> then everyone with the means to do so will leave and the tax base collapses. This answers it. thanks. > I guess in the grand scheme of things it doesn't really matter if some nonviable communities die while others grow/start, but you probably wouldn't want that to happen to your community. This is the exact moral sentiment I was considering as well.