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Housing

The (un)affordability of housing is of central concern to modern economics. Some recent research even argues that the majority of rising inequality over the past few decades is driven entirely by rising housing prices.

There are generally two main approaches towards reducing housing prices. The first is to increase housing supply, such as by repealing restrictive zoning laws, increasing competition and lowering prices. The second is to provide public housing, where the government owns and operates residential units, usually offering below-market-rate housing.
Raising taxes on land value under a split-rate system can increase land value per acre. Residential land is more sensitive to these changes than commercial or industrial land. After raising land value tax rates in an Australian territory, the typical new home buyer will save between $1,000 and $2,200 on mortgage payments. Raising land value taxes in an Australian territory did not affect the total cost of buying a home. The higher tax obligations were offset by lower land prices. The median average change in tax liability after revenue-neutral LVT was -28.6%. Split-rate tax in PA lowers the land/capital ratio, and does so more via more houses in a given land area than bigger houses (the improvement effect triumphs over the dwelling effect). Split-rate in PA increased growth in number of housing units by 2-5% relative to control groups.
Does Georgism Work? Part 1: Is Land Really A Big Deal? Post-Corona Balanced-Budget Super-Stimulus: The Case for Shifting Taxes onto Land Land Taxes and Housing Prices Tiebout Visits Germany: Land Tax Capitalization in a Sample of German Municipalities Land Value Taxation and New Housing Development in Pittsburgh The taxation of land value as the means towards optimal urban development and the extirpation of excessive economic inequality.
Lars Doucet Charles Goodhart Michael Hudson T. Nicolaus Tideman Michael Kumhof Poul Schou Mads Rahbek Jørgensen Anne Kristine Høj
Land Value Tax
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