Manville on Sharing Wealth of Housing Market
Associate Professor of Urban Planning Michael Manville was featured in a Los Angeles Times column about the possibility of a new luxury tax on homes in Los Angeles. The housing market has rewarded many homeowners who have seen their properties quadruple in value before selling. In response, the United to House L.A. initiative has proposed an additional tax on property sales above $5 million that could then be funneled into homelessness prevention. “If the value of your house doubles, that’s not because you did a killer kitchen remodel, it’s because L.A.’s economy took off like a rocket,” Manville said. “Did you personally kickstart the L.A. economy? Impressive as you are, probably you didn’t.” According to Manville, “the community as a whole created that value, and there is no particular reason that you should mop up a big share of it while someone who rents gets punished for it, simply because you were lucky enough to own a house while it happened.”
