Sorry. My home value on Long Island jumped 33% in the last year. I didn’t rush out and start buying stuff. Instead I had to put aside $$ because Nassau County and my school district were gonna be coming for more of my real money.
Your comment about home values jumping and the premise behind the article’s theory brings to mind my home sales this year. In my 70s and with serious health concerns in the last three years, we decided to sell our modest vacation cabin and our Suburban Phoenix area home to be closer to family in the Eastern time zone.
As luck would have it, the Lake of the Ozarks and suburban valley of the sun had great price booms the made our move comfortable. Do you know who could afford the high prices in both cases. The so called wealthy. The conservatives? Nope.
Both cases the ratcheted up homes were bought by school teachers. In the case of the vacation cabin, teachers with tenure and more spare time in their late thirties. In the bigger bite suburban home by retiring school teachers from near the Canadian border. Big pensioners.
That’s who drove those inflation purchases in my world.
Bing. Go.
Pumped up taxes on ballooning property values squeezes the middle class out of any pay raises or other increased income.