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> Owning… derisks housing both from an expense and sourcing perspective Except if property taxes increase beyond affordability as they have for many folks in s
by nyokodo 2y ago
> Owning… derisks housing both from an expense and sourcing perspective
Except if property taxes increase beyond affordability as they have for many folks in some states recently.
- Loocid 2y agoWouldn't their rent go up at a similar rate since the home owner would be copping those tax hikes anyway?
- leetcrew 2y agonot necessarily. rent and market value are related, obviously, but they don't have to increase at the same rate. in some markets, property values can increase much faster than rent. https://www.investopedia.com/terms/p/price-to-rent-ratio.asp https://www.investopedia.com/terms/p/price-to-rent-ratio.asp
- throwaway2037 2y agoYeah, I agree. Rent is essentially capped by median income. If mortgage rates are cheap enough, housing prices will skyrocket, but median rent will barely budge.
- readyman 2y agoProfit
- erehweb 2y agoCalifornia limits increases in property taxes to 2% for this reason. More generally, property owners vote at a high rate, so governments will usually be less aggressive in increasing property taxes. Of course, they still go up, but it's generally less of a risk.
- vlovich123 2y agoCalifornia’s approach privileges people who have lived in California in the past over the affordability of housing for people working today. It’s got its own popularity issues.
- sroussey 2y agoIt’s very similar to rent control in that way.
- throwaway2037 2y ago> as they have for many folks in some states recently. Can you name some examples?