Property Tax Liens, Private Capital, and Gentrification in the U.S.

This project examines the role of tax delinquencies in facilitating corporate real estate purchases in U.S. prime property markets, and the effects of these purchases on new property construction and housing affordability. In many jurisdictions, the local government not only has the authority to auction off property in the event of overdue tax bills — in what is known as a tax lien sale — but actively recruits corporate buyers in these auctions to help recover lost tax revenues. It has been alleged in the popular media that tax lien sales accelerate gentrification within major cities, promote wealth inequality, and allow certain companies to greatly expand their real estate holdings by converting cheap housing to commercial development projects.

I am seeking an RA to assist in the creation of a database of state and local legislative changes to the administration of tax lien sales and certificates. These reform variables will then be combined with real estate transactions data and balance sheets from real estate investment trusts (REITs) and private equity firms to assess causal effects of tax liens on urban development in major real estate markets.