As much as VCs and founders hate down rounds - if the public market has dropped in value by 50% for mostly macroeconomic reasons - isn't it fair to then suggest that properties on the private market should be similarly worth less?
We all hate for our homes to be worth 10% less in 2023 compared to 2022, but it is what it is, no?
> We all hate for our homes to be worth 10% less in 2023 compared to 2022
Speak for yourself. If all property drops, I'm ecstatic. I'm not moving or withdrawing money with a HELOC. So lower property values just mean less taxes for me. I mean, sure, it also means I may be underwater, but who cares?
And if I decide to move, that just means the delta between my current place and a new place is smaller in absolute terms.
There is literally no benefit to most homeowners for the real estate market being higher.
Not sure where you live, but where I’m from, an increase/decrease in home value affects your proportion of the overall property taxes but not the absolute amount. If everyone’s home goes down by 20% then everyone gets same tax bill.
On a sufficiently long timeline, the government has to pay more for land/payroll/other services if all the land prices increase because working people will want more pay to be able to afford their own land.
Everyone would get to pay the same tax bill proportionally, but not nominally.
> So lower property values just mean less taxes for me.
In my state, your property's assessed value for taxation purposes cannot rise more than 3% per year, creating a pretty long lag time from the value going up to the taxes going up.
My home is worth about $650K, but it's being taxed as if it was only $250K.
When you raise funding at a startup, you're usually creating new shares which dilute old shares. If a seed round VC is able to get out with a 20% loss then they might be happy, but what will actually happen is that the seed round VC's 10% share turns into a 8% share AND they look like they've taken a loss because the 8% share is worth less.
In growing markets, the 10% turning into 8% doesn't matter because it was 10% of a $1M company vs 8% of a $10M company. You're still richer (at least on paper) than you used to be.
We all hate for our homes to be worth 10% less in 2023 compared to 2022, but it is what it is, no?