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I don't like AirBNB and still think they should be banned, but not sure that what the graphic is stating has really panned out in Palm Springs.
According to Redfin, median Palm Springs home sale prices had appeared to drop by about $200k in Sept 2023 (to around $500k), but within two months they were right back close to where they had been before. They're sitting at about +18.4% year-over-year for median home sale prices. Given that alot of the properties for sale still appear to be in the millions, I'm not sure that they're representative of what we see in the rest of the country. There may be other data points out there that paint a different picture, that's just the first thing I looked up.
Makes sense to me, AirBNB is just one piece of the puzzle, get rid of them and they'll just sell their investments to a different group that's driving up prices. You've gotta completely overhaul home ownership and the housing market such that it exists in order to make speculative investment no longer a thing if you want to actually solve the underlying problem.
Additionally if the housing market was in free fall that would impact the tax revenue of the city. Not saying we don't want to do it, but there are going to be consequences.
City taxes are typically part of the budget and property values determine how much you pay in relation to other properties in the city, not how much your house costs. Say the city budget is $1,000,000 and 100 houses in the city (total), and they’re all equal value. Each house pays $10,000 in property taxes regardless of the value being $100,000or $1,000,000 per house.
Hyperbole and simplification done to make an easy explanation.
That is not true in at least the city I was in before. They set a tax rate percentage and you pay that percent of your home value as taxes.
So when house prices more than doubled during COVID did their tax revenue increase or did they readjust the % to match the new values?
there is usually an assessor that determines the assessed value, and that is the basis for property taxes.
transfer taxes are another matter, as well as capital gains on homes that are not your primary residence.
Yeah, and the assessed value is compared to the other assessed value of homes in the taxable area and that’s how they divide the tax revenue from the value of the house. So if a whole area is in feeefall and loses (or gains) 50% value equally then the taxes would be approximately the same. Every house dropping value and the city government isn’t going to just accept half the budget from property taxes that year, they just reassess and recalculate amounts owed.
they don't generally reassess every year
The median price doesn't actually tell you much here. It just tells you that the houses that are selling are in that price range, not what those houses would have potentially sold for a year or two ago.