Re:The house I was born in sold for $4000
by declan on Tuesday May 28, 2013 @02:15AM
(#5778413)
Quite right. What's interesting is that the Canadian homeownership rate is similar to that of the U.S., last I checked, even despite the different tax treatments.
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Re:The house I was born in sold for $4000
by robotresearcher on Tuesday May 28, 2013 @03:41PM
(#5782221)
My theory on this is that the prices adjust to cancel out the benefit from the tax break. The out-of-pocket expense to the buyer is the same and the general taxpayer is subsidizing a higher price for sellers. It's a cash transfer from taxpayers to established landowners cunningly disguised as a legup for the middle class.
I think the prices must adjust in this way since the supply of housing close to the supply of paid work is limited.
If anyone can point me to a decent analysis of this, I'd be grateful. But this is my pet theory.