Property Taxes Discourage Density

Local property taxes are often levied disproportionately on multifamily developers, resulting in higher taxes for apartment-dwellers, says Stephen Smith.

1 minute read

November 30, 2010, 1:00 PM PST

By Tim Halbur


Smith looks at a 2006 paper published in the journal Housing Policy Debate:

The study finds that for the nation as a whole, multifamily rental housing bears an effective tax rate (tax divided by property value) that is at least 18 percent higher than the rate on single-family owner-occupied housing. This gap appears to have arisen during the 1990s. The level of taxation and the apartment/house differential vary considerably by location. Much-but not all-of the differential is associated with the fact that apartments have a lower average property value per unit than houses. The residential property tax, as implemented, promotes low-density development, disproportionately burdens lower-value properties, and may impose higher taxes on apartment residents than on homeowners with identical incomes.

Thanks to Stephen Smith

Tuesday, November 30, 2010 in Market Urbanism

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Floor-to-ceiling rotating gates at Fairmount subway station in Philadelphia, Pennsylvania.

Crime Continues to Drop on Philly, San Francisco Transit Systems

SEPTA and BART both saw significant declines in violent crime in the first quarter of 2025.

April 28 - Mass Transit

South LA Wetlands Park in Los Angeles, California.

How South LA Green Spaces Power Community Health and Hope

Green spaces like South L.A. Wetlands Park are helping South Los Angeles residents promote healthy lifestyles, build community, and advocate for improvements that reflect local needs in historically underserved neighborhoods.

April 28 - ABC 7 Eyewitness News

Intersection in downtown Sacramento, California with neoclassical building with columns on left.

Sacramento Plans ‘Quick-Build’ Road Safety Projects

The city wants to accelerate small-scale safety improvements that use low-cost equipment to make an impact at dangerous intersections.

April 28 - The Sacramento Bee