Policymakers in cities around the world are looking for workable solutions for declining housing affordability. One response is to put in place new tax foreign homebuyers, a solution that many U.S. cities are now considering.
The intended results would be to create a revenue stream to fund affordable housing initiatives, and to ease competition for domestic, local homebuyers, though, the efficacy of such taxes are yet unknown, per Zillow. Their research shows the typical international homebuyer was targeting homes at roughly $399,000 in the U.S. in the third quarter of 2017.
Against this backdrop, Asian community groups in the Vancouver area reported an increase in racist and xenophobic sentiment in the months after British Columbia’s foreign buyer tax was enacted. Public officials in British Columbia were quick to disavow this sentiment, but the experience suggests that civic leaders should at the very least be very cautious in their language and clear in relaying the expectations and intent of the policies.
Advertisement
Related Stories
Construction
Proven Ways to Improve Jobsite Productivity
Consider these solutions for reducing cycle time, hard costs, dry runs, rework, miscommunication, and overall inefficiencies on the jobsite
Affordability
What Are Our Affordable Housing Options? Really
There are a range of ideas out there for addressing the housing affordability crisis. And while offering more housing choices is great, which of those are truly solutions to affordability?
Business Management
Happiness and 'The Bear'
Can happiness be the core strategy of a home building business? It can ... and it probably should be