Will raising property taxes change the San Diego Housing market for the better?
That's a question 10News recently explored, following a study done by economists comparing Texas and California.
A study from NYU economists discussed in an article by the Federal Reserve Bank of Minneapolis compares Texas and California for affordability in housing and property taxes. Texas has higher property taxes on a state level than California. The data model they used shows an inverse relationship between taxes and housing prices.
The study was sent to San Diego County Treasurer Larry, who was asked about it.
"Well, I think one of the big things that really impacts housing prices in San Diego County is we have a chronic housing undersupply. We've added jobs faster than houses for decades, right? Demand simply overwhelms available inventory," Larry said.
Larry went on to point out that high construction costs and permitting bottlenecks impact cost, along with what he called permanent scarcity. San Diego County just doesn't have a lot of room to expand housing, sandwiched by the oceans and the mountains. That's something Texas doesn't really deal with.
"They're not really looking at some of the critical factors, some transition dynamics of adopting this strategy," Larry said.
So Larry isn't going to advise anyone to raise property taxes anytime soon. He's hoping to address the housing supply by critically looking at regulations and housing supply first.
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