• General_Effort@lemmy.world
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    7 months ago

    High taxes would potentially push more costs on renters.

    Potentially, but I think here not so much. Competition drives prices down. In a perfectly competitive market, prices are pretty much equal to the cost of production. In that case, any tax would be completely passed on to the customer. But you can’t produce land at a certain location. My guess is that rents are largely determined by willingness to pay.