That is my understanding as well - but that is a completely different cause than what is being claimed.
Notably, while individual landlords are much more cash flow sensitive (as in per-unit issues), even big companies will have issues if these problems happen 'at scale'. And those problems will be monstrously large when they happen.
Occupancy taxes will just make the bubble pop that no ones wants to pop, since the issue is dropping rents will trigger defaults due to financing issues because financing is still more expensive than it was, and that isn't going to change anytime soon. And said taxes would trigger high cashflow costs, which would just force companies into bankruptcy ASAP.
Same with the bond issues that took out a bunch of banks last year, and still are causing structural bad debt issues everyone is trying to ignore right now.
> And said taxes would trigger high cashflow costs, which would just force companies into bankruptcy ASAP.
And that's fine.
Those who didn't stick their necks out should be able to buy the distressed assets at discount and force the financing agreements to unwind. Real estate doesn't go away. People still want houses. Businesses making products don't go away. Places to work--maybe not so much.
Unless you allow bad businesses to go bankrupt, you'll wind up like China.
Vacancy taxes force that decision much sooner--before everything goes belly up at scale. The landlord has to decide to rent lower or sell the property.
Notably, while individual landlords are much more cash flow sensitive (as in per-unit issues), even big companies will have issues if these problems happen 'at scale'. And those problems will be monstrously large when they happen.
Occupancy taxes will just make the bubble pop that no ones wants to pop, since the issue is dropping rents will trigger defaults due to financing issues because financing is still more expensive than it was, and that isn't going to change anytime soon. And said taxes would trigger high cashflow costs, which would just force companies into bankruptcy ASAP.
Same with the bond issues that took out a bunch of banks last year, and still are causing structural bad debt issues everyone is trying to ignore right now.