Bricks, Taxes and Spending
Solutions for Housing Equity across Levels of Government
This report addresses housing inequities through a series of analytical chapters and case studies. The cross-country chapters examine the effects of the COVID-19 pandemic on housing demand, develop a proposal for a green land value tax, evaluate the dynamics between fiscal autonomy and housing supply responsiveness, as well as explore the drivers of inter-regional migration. The case studies unravel the changes of Korea's progressive national property tax and a programme to address regional imbalances, assess the impact of the US property tax system on housing, dive into Norway's property taxation in relation to inequality, as well as survey Belgium's approaches to housing policy. With a blend of empirical data and critical analysis, the report underscores the pressing need for comprehensive strategies in addressing housing inequities. It also offers insights for policymakers and scholars, highlighting the complex balance between national and local housing policies.
Housing supply responsiveness across levels of government: Novel evidence on tax and spending autonomy
This research explores how fiscal autonomy across governmental tiers affects housing supply amidst declining housing affordability across countries. Using unique OECD indicators, the study assesses the decentralisation of housing-related spending and property tax autonomy. While local governments often possess insights into regional needs, they often encounter "NIMBYism", where current residents resist new development. The chapter also evaluates the influence of tax autonomy, particularly regarding property taxes, on housing supply. The results indicate that countries with more local control over housing spending policies exhibit lower housing supply elasticities. In contrast, for those subnational entities that control more of their property tax base, a higher elasticity is found, potentially driven by the lure of increased tax revenues from new development. This study underscores the interplay between spending decentralisation and tax incentives, suggesting that local tax benefits might counteract opposition to housing development.
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