Quote:
Originally Posted by jlousa
It's not that simple though, once you rezone the land to allow for higher density, the property value jumps enormously. So although no one is forcing you to sell, your property taxes have increased significantly and in many cases people end up forced to sell because they can't afford the new taxes. I know some people would argue that it's okay as they can sell their house for a lot of money and move somewhere else, well not everyone wants to move. There are lots of people that would prefer to stay where they are. Being involved in the process personally has been much different then being involved in it on a business front and I've gained respect for the other side of the coin.
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The other side of that coin is that the cities are losing out on an enormous potential increase in revenue and are in effect subsidizing owning a house in a central, urban location. IE: some people get to own a well located house at the cost of a higher average tax rate for the rest of us.
As well, if large swaths of land around stations were pre-rezoned from single family to multi family, that would have an effect on the market price. If there was lots of supply for developers (IE every house) then that would bring down the price.
Now you might say, that will bring down the tax rates and thus decrease revenue for the city. However, if you believe in supply side economics, then having an increase in supply will encourage it's consumption. If it were cheaper, easer, and faster to redevelop land, then there would be more of it happening. Which would help stabilize market prices at an affordable level (we ARE the most unaffordable city in the world at the moment) and at the same time increase city revenues due to the fact there are more properties to asses.
One of the reasons property values are so high in Vancouver is because of this phantom potential value of the land
IF it were rezoned for redevelopment because of the limited supply of rezoned land. Any property has potential to be multi family at some point, which makes it have a high potential income from it's value, which drives up the assessment, which drives up the selling price, which then drives up the market value of nearby homes. However, with the current rezoning process, which takes forever, most properties will never, ever realize this potential value and income, which means most people are paying for something they will never realize. It's ridiculous. If all well located land were rezoned, it would bring down the value of land that will most likely remain single family, making it more affordable for people to live there, while increasing the tax base by having more people live in the city (and having more people live in a city also increases revenue from business taxes quite a bit).