But this is exactly the point - the market isn’t free, it’s being controlled. Primarily by companies that are buying up as many properties as they can.
As long ad there are at least two companies in an area, it will be less profitable for every extra property versus your competitor.
That at least makes hoarding harder, as anyone can come in to out compete the two duopolies as their first will be way more profitable than the established’s 11th.
In turn, keeping prices down, scaled by the increase in taxes per extra property
The trouble is that ratcheting up the tax on additional homes won’t discourage anyone - the additional costs can just be passed on to the renters.
I’d suggest making it illegal for companies to own residential property for longer than 12 months.
Hopefully this would free up enough homes to bring prices back down.
“can be” passed to the renters, but in a free market someone else can do that for cheaper if it is their second home vs their 20th.
Each successive property is less and less profitable the more you have, compared to others that don’t have as many.
But this is exactly the point - the market isn’t free, it’s being controlled. Primarily by companies that are buying up as many properties as they can.
As long ad there are at least two companies in an area, it will be less profitable for every extra property versus your competitor. That at least makes hoarding harder, as anyone can come in to out compete the two duopolies as their first will be way more profitable than the established’s 11th. In turn, keeping prices down, scaled by the increase in taxes per extra property