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Cities typically don’t have draconian taxes on real estate.

• Retric 2y ago
  ~0.1% of real estate. If the major concern is these rules change nothing then that applies to both upsides and downsides.
  • kasey_junk 2y ago
    No the issue with activities that constrain supply is that they might constrain more supply than the explicit units impacted by the policy.
    • Retric 2y ago
      This very slightly constrains demand not supply. At most the knock on effects might impacts supply, but that’s up to the market to decide.
      • kasey_junk 2y ago
        The impact on the market is precisely the concern. I’ve not seen any studies that show how taxing market participants differently impacts the supply in real estate. So I don’t have strong convictions one way or the other. But you can craft a narrative that foreign buyers are higher margin customers so drive builders to create at higher then their participation rate. But more generally if you want more of something, generally I’m suspicious of efforts that make that thing more expensive.
        • Retric 2y ago
          You’re simply ignoring scale here. Having what in practice is probably 1 in ~5,000 fewer customers has negligible impact on a housing market. That’s assuming many foreigners who would be buying a 3rd home will probably substitute longer term rentals but it’s not zero and from the perspective of customers any movement is positive here.