Building more homes requires infrastructure to support those homes.
The real solution is to tax each additional dwelling ~30,000$ (depending on area) to pay for the infrastructure to support it and then actually build that infrastructure.
Either can work, but a 500k house and a 5 million dollar house are likely to need roughly the same supporting services in terms of schools and transportation etc.
The goal of such fees is to avoid subsidizing any specific type of development but as long as it averages out then it’s presumably fine.
These are Airbnb units we’re talking about, they’re unlikely to need many of those services (like schools). My goal is to reduce the amount of properties one can own without paying more than they’re worth. It should be prohibitively expensive to buy your 3rd property, as in 1.5x market price or more with the extra 50% going to cover local service expenses.
The real solution is to tax each additional dwelling ~30,000$ (depending on area) to pay for the infrastructure to support it and then actually build that infrastructure.