&gt; You&#x27;re assuming that the tax is so onerous as to make rental housing unprofitable. Not just less profitable, but a flat-out cash drain. That&#x27;s a pretty big assumption<p>Many, many landlords in this country are single property landlords or landlords that own a small number of &quot;single family homes&quot; [1-4 unit homes].<p>The gross cash flow of such properties is ~1% of the property value in cash flow. A 1% property tax equivalent increase wipes out all cashflow and guarantees an overall negative return given real estate stays about even with inflation, barring bubbles&#x2F;speculation.<p>However, the positive per-unit cashflow is about $100&#x2F;month&#x2F;unit in the real world if you picked a good investment. $100. You raise the tax burden by $1200&#x2F;year&#x2F;unit, the unit is worthless and must be sold. Pretty much all &quot;land value tax&quot; proposals require that much of an increase as they replace other revenue streams.<p>&gt;  ROI is cut in half<p>You&#x27;ve basically admitted the problem. If you cut ROI in half, you are better off investing in the market.<p>Real estate investing is very, very narrow in its advantage over other forms of investment [if you are good at it and can find good deals] to the tune of fractions of a percentage point. Perhaps as much as a whole percentage point.<p>If this wasn&#x27;t the case, everyone would plow their money into real estate instead of stocks&#x2F;bonds&#x2F;etc.