Work

Property Tax Policy and Housing Affordability

Year: 2024

Type: article

Abstract: We examine property tax reduction as a tool for increasing housing affordability. Analyzing various tax reduction policies through the lens of property tax incidence reveals a complex relationship between affordability and property taxes, with differential effects across demographic groups. Many policies often fail to improve affordability for young first-time homebuyers and renters, sometimes worsening affordability. We present a new nationwide atlas documenting the prevalence of local measures altering property tax burdens. Quasi-experimental evidence from Georgia’s homestead exemption valuation freezes suggests strong capitalization of assessment limits into home values, reinforcing that property tax relief may worsen affordability for first-time buyers.

Source: National Tax Journal

DOI: 10.1086/732777

Authors: Emily Horton, Cameron LaPoint, Byron Lutz, Nathan Seegert, Jared Walczak

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Sustainable cities and communities, No poverty, Reduced inequalities

Open Access status: green

OpenAlex ID: W4404345699

FWCI: 2.846

Cites: 69

Cited by: 8

Related to: 10