A @WSJ story today on second-home taxes mentioned early studies that found a negative association between such taxes and subsequent rents, but did not mention subsequent research that found a negative effect on house *prices* too. That's important because if taxing second homes reduces rents primarily by shifting vacant housing to the rental market, that's a relatively benign effect. But if it also decreases house prices, that means it's having an adverse effect on housing demand, essentially making a place less attractive to live in. The story does mention that taxing second homes could drive away people who contribute to the local economy without consuming many public services, but this is more than a hypothetical effect - real data seem to say it exists and it's strong (sources in replies).
