flexiblefullpage
Currently Reading

How Detroit’s New Land Value Tax Plan Could Serve as a Model for the Nation

Advertisement
billboard
Housing Policy + Finance

How Detroit’s New Land Value Tax Plan Could Serve as a Model for the Nation

Detroit's mayor is introducing a new land value tax plan intended to increase funding for new construction and resolve a rental affordability crisis


June 8, 2023
Detroit skyline and apartment buildings on a sunny day
Image: Davslens Photography / stock.adobe.com

It costs 24% more to rent the typical home in the Detroit area than it does to buy it; the biggest rent premium among the 50 most populous metro areas studied by Redfin. Luckily, a new land value tax plan from Detroit’s mayor will redistribute a portion of the collected rent or imputed rent from landowners back to the city to encourage development of more rental units while discouraging building vacancy, Forbes reports.

Implementing a land value tax in Detroit requires a law change at the state legislature, but if successfully legalized, Detroit’s new tax structure could serve as a model for the nation in a wider effort to add more rental supply and resolve the housing affordability crisis.

Growing cities may pass a land value tax to encourage the development of housing units to accommodate more residents while raising tax revenue more efficiently. Unlike income, property, and sales tax, a land value tax supports sustainable economic growth. Detroit may be the most extreme example of a city that has been unable to sustain economic growth, so if a land value tax works in Detroit, more cities will likely follow suit.

Read more

 

Advertisement
leaderboard2

Related Stories

Housing Markets

More Homebuyers Are Relocating for Affordability and Remote Work

A record number of homebuyers are relocating in search of more affordable homes. But where are they going?

Housing Markets

Tracking Tool Shows Home Price Gains Over Past 5 Years

This interactive tool reveals 5-year home price changes in the priciest U.S. counties

Housing Markets

Florida Is Now the Second Most Valuable US Real Estate Market

Housing markets such as Florida are seeing substantial growth driven by an uptick in new construction

Advertisement
boombox2

Top Articles

Advertisement
boombox1
Advertisement
native1
halfpage2

More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value

Advertisement
native2
Advertisement
halfpage1

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.