[giantg2]

How so?

It's just going to get rolled into the mortgage and passed on in cost of rent. Even if it's not mortgage, the people (companies) rich enough to do that will increase the price to meet their target return.

I don't see the price elasticity being a limiting factor. Your looking at $70 a month more on a $1k rent or $140 on a $2k rent, maybe even less if they plan it keep the property for a long time. People are choosing more on location and quality. Not to mention all properties, given sufficient time, will be subject to the tax and there will be no competition with existing untaxed properties to keep prices low, assuming there's any pressure to keep the price low in the first place.