Are the home values and property tax burdens of permanent homeowners affected by growth in housing rentals and second homes: Evidence based on big data from Florida
You can manage bookmarks using lists, please log in to your user account for this.
Media type:
E-Article
Title:
Are the home values and property tax burdens of permanent homeowners affected by growth in housing rentals and second homes: Evidence based on big data from Florida
Contributor:
Ihlanfeldt, Keith;
Yang, Cynthia Fan
Published:
Wiley, 2023
Published in:
Journal of Regional Science, 63 (2023) 2, Seite 470-502
Language:
English
DOI:
10.1111/jors.12629
ISSN:
0022-4146;
1467-9787
Origination:
Footnote:
Description:
AbstractHomeowners who make their homes their primary residence have resisted the entry of rentals into their neighborhoods and cities. Possible reasons underlying this resistance are that rentals reduce the property values, increase the property tax burdens, and raise the price of public services for these homeowners. We relate the market values of single‐family homes occupied by permanent homeowners, the effective property tax rate of these homeowners, and the tax price they pay for public services to shifts in their city's housing units toward a variety of different types of rentals and second homes. Our analysis is based on large panels of Florida homes containing hundreds of thousands and millions of observations. Our results show that increases in the share of a city's housing units used as rentals or second homes reduce the home values, increase the property tax burdens, and raise the public services prices of homeowners who permanently reside in single‐family homes. Impacts vary in magnitude among single‐family, condominium, and mobile homes used as rentals and second homes. Estimated impacts are the strongest for share increases in single‐family rentals and second homes.