The Paul Douglas Institute

A preliminary policy brief

While neighborhoods are classically assumed to face a tradeoff between economic development and decreased affordability, there may be room for innovative policy solutions to encourage development without displacing current residents. This brief provides initial insights on how a property tax cap may serve as one tool to mitigate gentrification. We outline potential benefits, consequences, and specifications of a property tax cap, and present an "assessment cap" as a possibly optimal instrument. While further research is required to assess the impact of a tax cap, this brief can guide initial conversations for local policymakers.