Unaddressed in the talk about the end of urbanism is the cost of it all.
In most places, commercial property and the taxes they pay far outstrip the revenue generated by taxing residential property. Well, that’s changing. Delivery services (and remote work) are killing commercial property values. As time goes by and assessments are updated, residential properties are seeing huge tax bill increases.
And municipalities are finding it ever more difficult to finance the infrastructure for new development. Add robotaxis and their associated reduction in local tax revenue from auto sales, and it becomes impossible to affordably build housing in the suburbs, if at all. In my little village, we’ve got a 1000-home subdivision proposed, and they’re asking for a TIF and then a bond backed by the TIF revenue to pay for water/sewer infrastructure. And I’ve watched the village board meetings online - the consultants have come in and said that they don’t think there is any way to convince anyone that the revenue generated will cover the bond servicing costs and that it will be very difficult to place the bonds. Meanwhile, the school district has come in and said that they need large upfront impact fees or they will do whatever it takes to kill the TIF.
stockresearcher•2mo ago
In most places, commercial property and the taxes they pay far outstrip the revenue generated by taxing residential property. Well, that’s changing. Delivery services (and remote work) are killing commercial property values. As time goes by and assessments are updated, residential properties are seeing huge tax bill increases.
And municipalities are finding it ever more difficult to finance the infrastructure for new development. Add robotaxis and their associated reduction in local tax revenue from auto sales, and it becomes impossible to affordably build housing in the suburbs, if at all. In my little village, we’ve got a 1000-home subdivision proposed, and they’re asking for a TIF and then a bond backed by the TIF revenue to pay for water/sewer infrastructure. And I’ve watched the village board meetings online - the consultants have come in and said that they don’t think there is any way to convince anyone that the revenue generated will cover the bond servicing costs and that it will be very difficult to place the bonds. Meanwhile, the school district has come in and said that they need large upfront impact fees or they will do whatever it takes to kill the TIF.