Decoupled From Reality

I paid the property taxes on my vacation home the other day. That got me thinking about the reality and impact I have on the local area and the ongoing debate around property prices.

I suspected property prices in the small coastal village where I have a vacation home were inflated, partly because of owners like myself buying in the area. But I recently discovered just how bad things have become. The village has the largest disconnect between median wages and median house prices in my entire region: properties cost 11.3 times the median annual wage. Only a few extremely wealthy areas around the capital city are worse. The report’s authors described it as “critically unaffordable for the local population.”

I don’t know how to process this information. Selling up wouldn’t help, another outsider like myself would just buy the property, probably turning it into a short-term vacation rental. That’s another area the report highlighted as placing extreme stress on local residents, with median rental costs exceeding 50% of median income.

I’m maybe not the worst vacation owner. I spent all of last summer at the property and plan to be there even longer this year. I make a point of using local businesses and contribute generously to charity events. I’ve helped fund a Halloween festival and fireworks display for the whole community. But it’s just a sticking plaster, it’s certainly not going to help a local find a home in the place where they played as children.

The council is currently drafting legislation for a 100% property tax increase on vacation homes and short-term rentals. The funds would be restricted to purchasing land for affordable housing—both for sale and rent—for local residents. I’m generally against targeted tax rises, but this one, as long as it’s targeted at affordable housing, I’d pay without complaint if it becomes law.

Last summer, the council canvassed opinions from all residents and property owners in the region. I drafted and sent a letter of support to the local council board considering the property tax change. From what I’ve learned from my neighbors, I’m in the minority, most second-home owners don’t see themselves as part of the problem. I do, and I’m happy to be part of the solution. It’s the least I can do for the local population of the area I love.

I want to be more than just a seasonal visitor; I want to be a neighbor who recognizes that for my coastal retreat to remain a home for me, it must remain a home for those who were born here…who would ever have believed I’d be advocating for a tax rise? It’s a strange old world!