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.
Do property taxes in the United States contribute to housing inequities?
This chapter aims to assess the contribution of the local property tax in the United States to housing affordability and housing equity. Although property taxes contribute to the annual costs of homeownership, to the extent that property taxes are capitalised into lower housing prices, they may make it easier for families to become homeowners. The impact of public policies on the distribution of property tax burdens is analysed by tracing the role of property tax administration and assessment procedures, tax reliefs and tax limitations on the burdens faced by low-income households. The study suggests that a high-quality property tax administration that eliminates or minimises any bias towards regressivity in property tax assessment, combined with a robust system of property tax reliefs that targets those facing high property tax burdens (relative to their incomes) will help reduce property taxes for households facing high housing cost burdens.
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