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In Denver, where nearly 27,000 rental units are vacant amid a housing crisis, housing advocates propose a “ghost tax” to incentivize landlords to make these units available and fund affordable housing initiatives.
The tax aims to combat the imbalance between empty homes and people in need of housing, but landlords fear it may drive rents up further in an already expensive market.
As Colorado grapples with housing affordability issues, advocates believe taxing vacant units could be a crucial solution.
FULL STORY: 27,000 Empty Apartments and 10,000 Homeless in Denver: Is a ‘Ghost Tax’ the Answer?
Key takeaways
- Ghost tax overview: The proposed ghost tax in Denver targets landlords who keep rental units vacant for extended periods, aiming to encourage them to rent out or sell these properties or contribute to affordable housing funds.
- Advocates’ argument: Housing advocates in Colorado advocate for the ghost tax as a means to generate revenue for affordable housing initiatives and bring unused housing back into the market to address the housing crisis.
- Landlord concerns: Landlords and property groups oppose the ghost tax, fearing it could lead to rent hikes instead of solving the affordability problem, as all additional costs, including taxes, may be transferred to renters.
- Lessons from other cities: Similar vacancy taxes in cities like Oakland and San Francisco have yielded mixed results, highlighting the uncertainty and challenges associated with implementing such measures.
- Implications for Denver: If Denver implements a vacancy tax on its 27,000 empty rental units, it could have significant financial implications, potentially funding affordable housing initiatives but also raising concerns about unintended consequences for renters and landlords alike.
While the ghost tax proposal in Denver offers a potential solution to the city’s housing crisis by targeting vacant units, it also sparks debates about its effectiveness in addressing affordability issues without inadvertently burdening renters further. The experiences of other cities underscore the complexities and uncertainties surrounding such measures, emphasizing the need for careful consideration and planning in implementing vacancy taxes.
This summary has been generated with AI tools and edited by Realtor.com® News & Insights editors. The full story, written and edited by Realtor.com News & Insights newsroom journalists, is linked at the top of the summary.