Quote:
Originally Posted by Jakz
I continue to be a skeptic regarding the tax difference. Household budgets are fixed. If households spend less on taxes, they have more disposable income available, most of which--given our supply-constrained housing market--goes straight to higher housing costs. Average rent in Vancouver is higher than average rent in Portland.
If OR and WA tax policies were brought into alignment, Vancouver housing costs would decrease relative to Portland. No one's saving money by moving across the river.
|
That assumes supply side is equal, which I'm assuming it's not. Portland builds far less housing than other cities, so the narrative goes. I would go as far to say the entire theory is people pay more sales tax in WA and that the states get the money one way or the other, so its a wash. But with tax free shopping an easy drive over the border, and the very high top income rate Oregon, it's pretty easy to come out ahead in WA with people of middle to high income. And then, if WA tax is regressive, the tax advantage must go to higher income people there....otherwise no taxes anywhere could be considered progressive or regressive if it simply works out in the end, that is literally the definition.
A quick Redfin search has 316 homes for sale in clark county the meet newly built (2023+) moderate high income ($400k+), 2k sf, 3 BR, etc. The 3 counties in OR have 473 homes. Clark county has 20% of the metro population but 40% of new home construction (assuming sold/for sale are similar rates). That tells me Clark is WAY better at building new homes for this income bracket, and likely keeps the prices moderated.
Prev
Linear Mode
