Part 4/11:
This sharp decline is especially pronounced in commercial real estate, which often involves properties worth well over the $5 million threshold. As a result, developers and investors are hesitant to undertake new projects, knowing that the transaction taxes significantly cut into their profits. For example, a typical development profit margin of 10-12% can be halved due to the tax, discouraging new affordable housing units, studios, warehouses, or commercial complexes from being built.