Do Rising Property Taxes Force People to Sell?
*Names in bold indicate Presenter
We build off this work with data and econometric improvements. We search for the involuntary displacement effects of property taxes by estimating and comparing survival functions for homes receiving a temporary and decreasing property tax abatement to similar homes that do not receive the reduction. The event in question is a resale with time to resale as the response. While both groups experience increasing property taxes over time, due to the declining tax savings experienced by homes with abatements, the magnitude of the increase is considerably larger for them than for the unabated homes. We test the null that survival functions are statistically different from zero between the two groups. Failing to reject the null would indicate that larger property tax increases do not impact time to resale any differently than smaller property tax increases, thus undermining the argument that increasing property taxes force residents to involuntarily move.
To test the hypothesis, data are drawn from condo apartments in New York City sold between 2005 through 2015.
- Propheter_ownership_duration_421a_v1.pdf (383.1KB)