Lyndsey Rolheiser

@rolheiser.bsky.social

6821 Followers 1123 Following

assistant professor urban/real estate economics. cities, bikes, plants, dogs, cats. York U | MIT CRE | www.lyndseyrolheiser.com

Sunset in Toronto

Google maps satellite image of Cape Coral Florida

Sleeping black dog

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TTC fare inspectors waiting to board a streetcar.

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Abstract: Residential Property Assessed Clean Energy (PACE) loans allow homeowners to fund investments in green residential projects through their property tax payments. We assess equity-efficiency trade-offs of PACE using novel loan-level data from Florida merged to property transaction, tax, and permitting records. PACE projects are capitalized into home values, but expansions of the property tax base are partially offset by an uptick in tax delinquency rates among borrowers. Lenders in PACE-enabled counties expand mortgage credit access, indicating improved recovery values despite a PACE lien’s super seniority. Overall, PACE adoption increases local fiscal income while improving climate-proofing of the housing stock.

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Northern lights

In Seattle, where developers have the option to pursue either strategy, our case study found that builders often prefer constructing four townhomes, each priced at around $1 million, rather than a single $3 million McMansion. While constructing McMansions should remain an option, building multiple units is often preferable. For prospective homebuyers, it creates three additional housing units at a price point comparable to that of the original, more modest home. For builders, it offers greater profit potential with less risk, as it is often easier to sell these more modest homes. And for the city, this approach increases the total assessed value of the property, resulting in higher tax revenues.

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