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> In the 70s and 80s even 90s someone on a teacher's salary could own their own home in a major world city - say London.

You can still have that. All you need is a real estate tax. But nobody wants that. People don't want cheaper homes, they want to become part of the home-owner elite and get their own appreciating asset.




Property taxes in certain areas of the US (most of the East Coast, for example) are already ridiculous. You could buy a house in the midwest for you what you pay in property tax alone in New Jersey.


Is the property tax higher than the yearly increase in value of that real estate?


No, tax won't help. The reason is because the population grew and the amount of land available stayed the same. (Google London population growth charts).


How much of the increased housing costs is due to growth and how much due to lack of real-estate taxes?

Real estate prices are going up everywhere - including places with negative demographic trends.


Again, Google the population growth charts for London. It's been increasing since the 90's. Yet, there's still the same amount of space. Taxes will probably have unintended consequences, ripple down the whole economy. Another post-Brexit blow.




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