this post was submitted on 20 Feb 2026
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Property taxes are typically very low compared to the capital gains they will accrue. On balance, it's still a great deal for the individual if home values skyrocket. Of course, it's terrible for society. On the other hand, if land taxes were 5%, then you would be correct: people would hate for their properties to jump in value. If they went up too much, they would sell and move elsewhere, pushing up supply and reducing prices.
capital gains only comes into play if you did not live in the house for two of the last five years you own it. Anyone who actually lives in their house does not have to worry about that. Property taxes are a major expense. One thing I see with people who have not owned real estate is they think a paid off house has no expenses but the taxes, insurance, and if you have something with an association (often times the only affordable option in metro area) and you still have a monthly nut. Its a bit lower but not static because all three of those things are as effected by inflation as anything else.
That depends on jurisdiction.
yeah im talking in the us.
And then you'd actually have the same problems, just with land that's easy to buy but has less earnings potential. It'd still be comically expensive to get utilities put in, in some jurisdictions, and you'd still have to wrangle a giant crowd of NIMBYs every time you want to build anything meaningful.