The highest mortgage rates in more than two decades are keeping many prospective homebuyers out of the market and discouraging homeowners who locked in ultra-low rates from listing their home for sale.
The dearth of available properties is propping up prices even as sales of previously occupied U.S. homes have slumped 21% through the first eight months of this year.
The combination of elevated rates and low home inventory has worsened the affordability crunch. Where does that leave homebuyers, given that some economists project that the average rate on a 30-year mortgage is unlikely to ease below 7% before next year?
It would encourage things like renter owned co-ops, and discourage things like LLCs owning a shitload of apartments.
It really wouldn't, since all rental units would pay the tax. You'd just drive up cost of renting.
Good way to find the ceiling on rental prices I suppose
It's like you have no understanding of what rental co-ops are. Or are just choosing not to. Rental co-ops don't have income. They might have utility and maintenance costs. But none of that would become anyone's income. In fact because there is no profit located or individual income to be derived from this. Even before taxes it would be way cheaper.
I understand what a co-op is, but there aren't going to be a lot of rental co-ops, ever.
ever is a really long time, you sure you want to make that definite of a statement?
there are plenty of examples of successful co-ops all over the world, after all!
why would you think the u.s. is some special, magical place where they could never ever work when they work just fine elsewhere?
Yes I am quite confident that, culturally, the US is not likely to ever have a predominance of rental co-ops.
Raise rental taxes 50% and you'll see a lot more homeless people and not many more co-ops.