Unused housing should be taxed mercilessly.
And single-family homes should have a 100% annual tax on them, unless they are owned by an individual human/family (none of this LLC bullshit) who own only 1 house. Make a 6-month exception for inherited houses just so they can be sold, but otherwise just tax the shit out of them.
Make hoarding housing a liability.
6 months to offload a house is not always so easy.
I did a search around the area I grew up that is very rural and I checked 4 properties for sale, two of them under $100k and they’ve been listed for over a year. In urban areas there’s demand, but rural areas commonly have houses just no one wants on land that no one cares about. No distant LLCs want them so they are available, but they aren’t convenient to anything so no one wants them either.
That means they aren’t worth 100k. Forcing people to sell them for their actual value will lower real estate prices nationwide.
There are many cases where you just can’t reduce prices enough to make them sell
- my higher priced town paid Pennies on the dollar for a complex that used to be a mental hospital and housing for various challenged. No developer was willing to pay anything because of lead and asbestos remediation costs. My town was hoping to get EPA funds and didn’t so is saddled with unusable property that it also can’t afford to clean up
- the town I grew up in has been declining for decades. Many houses are well below the cost of cars but still no one willing or able to buy. Last time I checked there seemed to be a floor at $5k but there were multiple habitable houses for $5k, and no buyers
If they’re not worth any money, then the tax burden of sitting on them shouldn’t be high enough to be a problem. But if it is, you can sell them cheap, abandon them to government auction, replat them with neighboring cheap lots do make ag land or a large lot for an industrial or multifamily development, or more.
“I can’t make a bunch of money selling or renting this lot” is not an excuse to just sit on land waiting for the value to go up.
Pricing of homes in food deserts has pretty much zero impact on the housing that could actually help low-income individuals.
The housing situation and relative benefits (and lack therof) to house residents in rural areas is just fundamentally distinct from the urban situation.
I like that this idea also punishes single family home owners for hoarding land. You could build a ton of apartments on a single American-sized sfh lot.
That assumes that all land is taxed at a similar value. However my property at 1/5 of an acre in town is worth more than a standard suburban acreage.
I think this continues to discourage living in higher density downtowns where there is walkability and transit, while enocuraging sprawl because large single family suburban lots are cheaper so have lower tax
I don’t see that it does that. What do you mean?
And Airbnb. Fuck that company and the people that buy houses and use them for this. My parents live in the mountains in a popular spot for vacations and camping. Nowadays they are the only house on their entire street that isn’t an Airbnb.
I don’t like the idea of US government taking the property at below market value, since that would violate the takings clause of the Constitution.
What I would be in favor of is a real estate tax that increases if a property isn’t permanently occupied. Something that would encourage people to either reduce rent or unload the property.
It should be a reasonably gradual increase so that landlords aren’t penalized if they can’t find a tenant in the first or second month the unit is vacant. However if it’s been a year they should be approaching the point of owing more in taxes than the property is worth.
Then you can take it for back taxes.
It would also discourage air b2b type arrangements, unless you own and live in the property. No more buying a house so you can rent it out for exorbitant rates.
Couple the increasing property taxes on vacant homes with an agreement that there are no property taxes on properties leased for free to qualified individuals (people who would qualify for government housing anyway essentially) and the government will pay for repairs. The government gets a cheaper place to house the homeless, having only to pay for repairs, the landlord gets an appreciating asset with no repairs to worry about, and the homeless get a place to live. Seems like a win all around unless I’m missing something.
I like this idea.
The only thing I can see that you’re missing is the requirement that poor people still suffer.
It’s bad enough to punish incident property hoarders for their hard work (inheriting wealth is hard work - you have to pretend to not be a piece of shit until Grandpa dies). You can’t also let poor people benefit from that at the same time!
Honestly I would be okay with giving them 6-12 months of leeway. There’s a ton of reasons why it could take 6 months or more to be able to find a tenant, especially if the previous tenant did significant damages or if there’s wider economic issues in the area.
I’d be ok with them being able to appeal the increased rate, but they’d need to show that they are actively working to make it ready to rent.
Okay yeah. That could be a fair compromise. I like that.
Whether a property is occupied seems too easy to game.
Currently many places already tax a “primary residence” differently. My town’s approach is all residences pay the same property tax rate but your primary residence has a significant value exemption so is effectively taxed less. This advantages people who own their own homes while giving some discouragement to people hoarding homes or having a vacation home or being a landlord. However the difference needs to be greater to have an a real effect. I’d argue the exemption for primary residence should be enough that lower income people be free of property tax on their own homes and the difference made up by higher rates on their own rest of us. It would be too expensive to hoard vacant properties, less profitable to airBnB
And there is already process and precedent for towns repossessing for unpaid property tax.
Eminent domain in California… You get $0.00 for your contribution.
I am a former landlord and I approve of this message. We are back in the house we rented out for 22 years after we moved across the country to a better job, in a place we didn’t care for. We kept our house here so we could come back. We rented it out for 22 years at 30% or even less than market rate ($1600 a month in 2022 for a 3 bed two bath house near LA and a 10 m walk from the train) and we endured crooked and incompetent property managers, failed appliances and tenants who didn’t pay rent. One became a bank robber after we evicted them for not paying rent. They could have started robbing banks earlier I guess so they could at least pay the rent. Anyway, it worked out very well for us. We are back in our house where we like to live. People and companies who buy a bunch of houses and don’t rent them out to give people places to live shouldn’t be able to profit from doing that.
I’m a condo super, there’s one apartment in my building that has been vacant for 5+ years and the owners i think live in Hong Kong. If someone busted in there they could squat for years
That’s terrible. You should post the address and unit number so everyone knows to stay away from it.
Where I live there was a super-popular local bakery. The landlord tried to get them to pay a higher rent and then kicked them out when they refused. The building has now been empty for the last five years. I do not understand the economics of this shit.
Not likely intentional, more likely a redevelopment attempt that fell through, is blocked by zoning or other red tape, or changing market conditions.
We have a similar situation on a prime location on a very active street of shops and restaurants: there’s no reason for these building to be vacant for years. However I understand they wanted to redevelop to a much bigger building and have not been able to get it re-zoned.
Right across the street a similar redevelopment effort has been a huge success with something liver 100 apartments over street level restaurants. That’s perfect for that location and we need more of it, but exceeded zoning limits. Ever since then, our town council has been dragging to slow redevelopment
There are literally amendments to the Constitution preventing this from happening have you all lost your mind!
They’re just kids living out a simplistic power fantasy. “If I were king of the world, I’d solve this huge, intractable problem with a simple order”. Like Mao ordering all the sparrows to be killed. Hopefully, once they experience the world a little, they realize that big problems are big because they’re difficult and complicated to solve.
Even if we build cheap apartments for the homeless and fully fund it with tax payer money it actually saves tax payer money and gets the homeless out of the already over stressed healthcare system.
Most homeless are in and out of the hospital for easily preventable diagnosis that is a direct result of living on the street. This would free up a bed in the ED, free up a bed in acute care if admitted, and free up urgent care and other EMT resources.
This has been studied for YEARS. We know the answer to directly solving this without even trying to fix the other systemic issues at play here.
However, having a homeless population is good for capitalism. It’s an area where an employer can point to and say, “If you don’t work for pennies on the dollar, you’ll end up there.”
Do you think you provide housing? Here’s a list of common signs:
If someone stole all your tools, you’d kill them, and you don’t think that’s weird.
Unhealthy relationship with caffeine (bonus points for other substances too)
At least one fucked-up bone or joint
There’s some Liquid Nails or silicone caulk stuck in your favorite work shirt
Your hearing isn’t as good as it used to be
Regular porta-shitter use
If two or more of these fit your lifestyle, you may be a provider of housing.
Based I think the same thing should be done to retail stores. If you can’t get people to rent it. Force a sale of the building
This is something I find baffling.
In my city, it’s generally a hotspot with dramatically increasing real estate costs and high occupancy, generally.
Except this one road, which has all sorts of vacant retail, with different owners, with thriving retail and/or residential pretty much everywhere around it. Even the gas stations are 50c a gallon cheaper there then going a mile north or south of it. I have no idea why that one road is different and looking like a dying city while being surrounded by exactly the opposite.
Canada instantly bursting in flames
why do you hate me so?
Why pay 40% market value?
How about this instead. If we continue to have rent and landlords, let’s make a market incentive to lower prices.
Tax empty housing at a rate proportional to the advertised rental rate. Example, if a landlord has an unused unit listed for 1500 a month, they pay an empty housing penalty of, let’s arbitrarily say 20%. Now they have an incentive to fill the unit at a lower price. They can no longer just price-gouge with their competitors to drive up rates. What do we do with the money we receive from those penalties? We provide housing assistance. So now the top and the bottom of the market start to balance each other out. Here’s the real cool thing about this system, you can tie that penalty rate to the number of housing-insecure or unhoused people in the population. Now we can have a self-regulating system that provides an incentive to push rental rates down, but also gives low-income renters more money to rent with.
Hey, I just rented my property for exactly what the council rates and body corporate expenses are. A $160 pw home. Not even a mark up to cover repairs etc, because capital gain will more than cover that. I did it because I hate what is happening in housing currently, especially for young buyers. Now my new tenant wants to delay moving in for 3 weeks, and not pay any rent during that time. /sigh…what scum I am…
try 100%. housing should be covered by taxes.
People have vacant home??? Where?
