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

courses user

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges. Corey D, Transportation Planner

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges.

Corey D, Transportation Planner

Ready to give your planning career a boost?

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

Seattle Legalizes Co-Living

A new state law requires all Washington cities to allow co-living facilities in areas zoned for multifamily housing.

December 1, 2024 - Smart Cities Dive

Times Square in New York City empty during the Covid-19 pandemic.

NYC Officials Announce Broadway Pedestrianization Project

Two blocks of the marquee street will become mostly car-free public spaces.

December 1, 2024 - StreetsBlog NYC

Broken, uneven sidewalk being damaged by large tree roots in Los Angeles, California.

The City of Broken Sidewalks

Can Los Angeles fix 4,000 miles of broken sidewalks before the city hosts the 2028 Olympic Games?

December 5, 2024 - Donald Shoup

Dense informal settlement on steep hillside in Brazil.

Housing as a Climate Resilience Strategy

Ensuring that housing, including in informal settlements, is safe and healthy for its residents is a key tool in the fight to build more sustainable and equitable communities in the face of climate migration.

2 hours ago - Time Magazine

Close-up of person on road bike riding on protected bike lane separated by concrete curb from street.

Southeast LA Road Safety Advocates Call for Improved Infrastructure

Streets in southeastern Los Angeles County have a severe lack of protected bike lanes and traffic safety measures, leading to high numbers of fatalities in a community where many residents depend on walking and biking for daily needs.

3 hours ago - LA Public Press

Close-up of Chevron gas station sign with logo and prices starting at $7.25.

USDOT: Low-Income Households Bear Highest Transportation Cost Burden

Transportation costs are the second-highest household expenditure behind housing for all income levels.

4 hours ago - Smart Cities Dive

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.