Sales Taxes Raise Housing Costs

Local sales taxes and tax structures often have hidden, distributive effects on housing: taxes on building materials, development inputs, or retail can raise the price of construction and everyday living, shifting costs onto renters and new buyers. City-level conversations that focus on density but ignore these tax channels miss a major driver of affordability outcomes. — Putting the spotlight on sales-tax incidence reframes urban affordability debates, expanding policy options beyond zoning and permitting to include tax reform and revenue design.