Get ready for Valentine’s Day weekend by spending time with your one true love – real estate. I can admit there are parts of real estate that are hard to love, especially property taxes. That tension is coming to the surface as homeowners in several states have been fighting against the system, petitioning to readjust or eliminate property taxes entirely. |
In today’s newsletter, I’ll be unpacking the growing push for property tax change, alongside a rental market that’s splitting in two. While much of the country is seeing vacancy rates climb to record highs, markets like New York City remain locked in by extremely tight inventory and low vacancy, keeping conditions effectively frozen, and not because of the weather. Plus, a Miami Beach home is making waves with creative marketing. And an insight into what tripped up FSBO sellers the most. All of which makes clear that we are currently in a market where strong positioning and experienced guidance make all the difference.
|
|
|
Here's what you need to know today: |
|
|
Across the US, homeowners are receiving their tax reevaluations and are unhappy with the results. Property taxes are up roughly 30% nationally since 2019, spurring a citizen-led movement to abolish or reduce taxes that is gaining traction in states nationwide. What began as grassroots frustration is now translating into real policy action, prompting lawmakers and voters to question whether ownership is sustainable as tax bills rise faster than incomes.
|
This movement is no longer theoretical, as Montana and North Dakota have already enacted property tax cuts for 2025. Ohio has also capped future inflation increases, and Florida is considering a long-term plan to eliminate homestead property taxes. While full repeal in many states is unlikely, pressure is increasing for caps, exemptions, and tax shifts that can materially impact affordability, home values, and inventory. Property taxes are becoming a front-line variable – one that can influence seller motivation, holding costs, and even price appreciation in markets where relief measures take hold. What this may mean for the market: 😟 Investor concerns: Profit margins are tightening due to rising property taxes. States where tax reforms are still being debated or will not be enacted may see a decline in investor interest. 🎉 Affordability growth: Buyers may see greater affordability in markets where property taxes are capped, reduced, or exempt, as monthly ownership costs will be lower.
💰 Tax policy becoming a pricing factor: Agents need to be aware and educate their sellers on the fact that buyers are paying closer attention to current and future tax expenses, impacting their offers, negotiations, and flexibility. |
|
|
Do you think the unconventional pricing strategy for the luxury Miami home is an effective marketing tool? |
|
|
How often should an agent post on social media? |
|
|
Vacancy is rising, leverage is shifting, and renters are winning – except in markets where no one is moving. While national vacancy rates have risen to over 7%, a record high driven by a surge in new supply and cooling rental demand, supply-constrained, highly regulated markets such as New York City have seen extremely low vacancy rates. In the oversupplied Sun Belt and growth markets, rents are down for the sixth consecutive month, with newly delivered luxury buildings seeing the largest impact. Renters in these metros suddenly have leverage, options, and negotiating power.
Vacancy rates remain extremely low in New York City, and not just due to heightened demand, but also because no one is moving. Nearly 90% of NYC renters stayed put in 2025. Rent-stabilized units account for roughly 40% of the rental stock, and vacancies in those units are below 1%. With a rent freeze in stabilized apartments expected as early as late 2026, tenant turnover could fall even further, effectively locking large portions of the market in place.
What investors are prioritizing now: |
- Smaller units: Demand is strongest for studio, one, and two-bedroom rentals. These rentals are absorbing pressure better than larger units and are turning over less frequently.
-
Metros insulated from supply waves: Properties in submarkets with limited new rentals, restrictive zoning, or regulatory friction are proving more resilient than headline-growth markets.
- Caution around luxury: Luxury amenity-rich properties are absorbing the bulk of today’s vacancies. Investors are approaching these types of properties cautiously and examining true demand rather than headline rents.
|
📍Identify markets you are considering investing in and evaluate the demand. 📊 Pull vacancy data for specific neighborhoods, not the entire metro. 🏗️ Research and identify submarkets with no planned rental deliveries over the next 12-24 months. |
|
|
A residence on Miami Beach’s coveted North Bay Road, famously known as Billionaires Row, is drawing global attention, and not for its design and offerings, but for how it's being sold. The three-bedroom, three-and-a-half-bathroom contemporary home, reimagined in 2025, offers soaring ceilings, wall-length windows, a chef’s styled kitchen, and a heated saltwater pool. |
What has turned the property into a headline-maker is its unconventional pricing strategy. Hey, it's got me talking about it. The property was initially listed at a $7,495,000, and since then, the asking price has increased by 50% each day it remains on the market. The seller is using MLS-compliant pricing software to compound the price daily. As of February 5th, the price rose to $432.2 million, surpassing the previous record for the most expensive home ever listed on the MLS. This unique strategy has transformed the listing into a live narrative, fueling discussion and media coverage. Whether the home sells anywhere close to its escalating list price, the strategy underscores that in today’s market, storytelling and spectacle can be even more powerful than location and features. The price may be theoretical – but the attention is very real. |
|
|
In 2025, 5% of home sellers sold without a listing agent. These sellers who went For Sale by Owner (FSBO) report that their biggest struggle was pricing, and brokers thats your coaching cue. If pricing is a FSBO’s kryptonite, make it your agents super power. This is where brokers need to be sharpening their edge. For many agents, pricing is just pulling a Zestimate when it should be a mix of studying comps and understanding market conditions, buyer psychology, and local competition.
|
Brokers need to train their agents not only to properly price listings but also to clearly communicate the cost of poor pricing — time, leverage, and money. Overpricing leads to fewer showings, weaker demand, and inevitable price cuts, something 59% of FSBO sellers had to do at least once. And price cuts don’t always recover momentum. My clients were often suspicious of homes with price reductions, believing there must be something wrong with the property, and then wanting to offer even less.
What’s working right now: |
-
Pricing education: Brokers need to train their agents to price listings accurately. A great exercise I often employed was developing a fictional scenario. Describe a home in your market, where the property is located, home style, and features, and have your agents come up with a listing amount. Have the agents present their price and how they determined it, confirming that all your agents know how to properly develop a listing price.
- Market intelligence: Consistently review comps, discuss buyer behavior, and new trends visible in your market. I’d recommend scheduling weekly or biweekly meetings to educate your agents on the market and to give them a forum to share any insights they have.
-
Explaining pricing importance: Ensure agents can clearly and confidently communicate the importance of pricing a property, and how aspirational pricing can greatly affect a listing. I’d recommend dedicating a portion of your listing presentation solely to describing how you determine the best price.
|
Post Tip: If you’re posting a video, make sure to have your captions displayed on the screen. 85% of users scroll without sound. |
|
|
✈️ Wealth migration to Las Vegas: Las Vegas Review-Journal reports a growing influx of wealthy residents from California and Washington into the Las Vegas Valley, driven by tax policy changes, lower cost of living, and Nevada’s lack of a state income tax.
🏈 San Francisco revival: Realtor.com discusses that hosting Super Bowl LX is giving San Francisco a global stage to showcase the city and renew buyer demand, fueling early signs of a real estate rebound.
🏠 Turnkey investing on the rise: Norada Real Estate Investments showcases that turnkey properties are gaining popularity in 2026 as a simpler, hands-off way to invest – offering immediate cash flow and lower operational friction for new investors. |
|
|
|
Sophia Doyle is a staff writer at The Close and a licensed New Jersey real estate agent with hands-on experience in residential real estate. Sophia brings real-world insight into today’s housing market, combining on-the-ground agent experience with a strong background in communications. She understands the full transaction lifecycle, from lead generation and client relationships to marketing strategy and deal execution. Through her writing, Sophia delivers clear, practical guidance to help agents navigate an evolving industry with confidence and creativity.
|
|
|
Advertise in The Close The Close is a TechnologyAdvice business © 2026 TechnologyAdvice, LLC. All rights reserved. TechnologyAdvice, 3343 Perimeter Hill Dr., Suite 215, Nashville, TN 37211, USA. |
|
|
|
