Cities,
Counties and States have crafted their ordinances and laws to increase property
valuations in order to increase tax revenues.
Home owners support this plan because it makes their home values rise.
But
there are diminishing returns. As home values rise, the percentage of potential
home buyers diminishes. So these home owners may not be able to sell their
homes when they want to. Also, the cost of living in these areas rises and that
makes it less attractive for employees and businesses, so they go elsewhere.
It
is true that some employees will move to expensive big cities to take high
salary jobs, but many will not take these jobs.
The typical pattern has been for new grads to make the move to expensive
cities, but if they marry and have kids, they will want to buy a home in the
suburbs where the schools are good and cost of living is lower.
I
used to run an ad inviting engineers to take jobs in Atlanta with a picture of
a large, gorgeous, colonial 2 story brick home in Atlanta priced at $200,000
next to a small 1 story run-down stucco dump in Los Angeles priced at $200,000.
Norb
Leahy, Dunwoody GA Tea Party Leader
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