Do broker fees and taxes drive this as well? In NYC, there's a 6% broker's fee, and another 2% in taxes - and some buildings charge another 1-2% flip fee. So t

Do broker fees and taxes drive this as well? In NYC, there's a 6% broker's fee, and another 2% in taxes - and some buildings charge another 1-2% flip fee. So transaction costs eat 10% of the value, meaning people need at least a 10% appreciation to cover for this. At the very least this leads to a much less liquid market, but I could see it leading to run away price increases as everyone tries to break even.