To Own or to Rent? The Effects of Transaction Taxes on Housing Markets

• 成果类型: Article
• 署名作者: Han, Lu; Ngai, L. Rachel; Sheedy, Kevin D.
• 署名单位: University of Wisconsin System; University of Wisconsin Madison; University of London; Centre for Economic Policy Research - UK; London School Economics & Political Science; University of London; London School Economics & Political Science
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdaf092
• 发表日期: 2026
• 关键词: HOMEOWNERSHIP; canada

摘要

Using sales and leasing data, this paper finds three novel effects of a higher property transaction tax: higher buy-to-rent transactions alongside lower buy-to-own transactions despite both being taxed, a lower sales-to-leases ratio, and a lower price-to-rent ratio. This paper explains these facts by developing a search model with entry of investors and households, households choosing to own or rent in the presence of credit frictions, and homeowners deciding when to move house. A higher transaction tax reduces homeowners' mobility and increases demand for rental properties, which explains the empirical facts and leads to a lower homeownership rate. The deadweight loss is large at 111% of tax revenue, with more than half of this due to distorting decisions to own or rent.