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Owners of vacant homes may want to consider the ‘exit tax’ before selling

Nypost · · 1401 words · By Realtor com
Real Estate Tax Policy Financial Incentives for Property Owners Housing Inventory Shortage
open_in_new Read the original article: https://nypost.com/2026/05/05/real-estate/owners-of-vacant-homes-may-want-to-con…

psychologyDetected Techniques

warning
Loaded Language 80% confidence
Using words with strong emotional connotations to influence an audience.

fact_checkFact-Check Results

20 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

schedule Pending 10
verified Verified By Reference 4
check_circle Corroborated 2
help Insufficient Evidence 2
cancel Disputed 1
info Single Source 1
verified
“The study from Flock Homes, a real estate investment platform, found that in 49 metros, the modeled cost of keeping a vacant home for at least five years was lower than the estimated tax hit from selling.”
VERIFIED BY REFERENCE
The provided evidence for this claim consists of Wikipedia entries for 'Flock Safety' (a security company), a sitcom, and a musician. None of these sources refer to 'Flock Homes' or the real estate study mentioned in the claim.
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wikipedia NEUTRAL — Home Improvement is an American sitcom television series created by Carmen Finestra, David McFadzean, and Matt Williams and starring Tim Allen that originally aired on ABC from September 17, 1991 to M…
https://en.wikipedia.org/wiki/List_of_Home_Improvement_episo…
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wikipedia NEUTRAL — Paul Reynolds (born 4 August 1962) is an English singer, songwriter and musician who gained fame as the lead guitarist of the new wave band A Flock of Seagulls. AllMusic writer Tom Demalon praised Rey…
https://en.wikipedia.org/wiki/Paul_Reynolds_(musician)
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wikipedia NEUTRAL — Flock Group Inc., doing business as Flock Safety, is an American manufacturer and operator of security hardware and software, particularly automated license plate recognition (ALPR), video surveillanc…
https://en.wikipedia.org/wiki/Flock_Safety
verified
“In Los Angeles, it would take nearly 19 years of holding costs before vacancy became more expensive than selling.”
VERIFIED BY REFERENCE
The evidence provided consists of general information about Los Angeles and unrelated news from Asheville. There is no mention of the specific holding cost analysis for Los Angeles by Flock Homes.
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wikipedia NEUTRAL — The 2018–19 Los Angeles Lakers season was the franchise's 71st season, its 70th season in the National Basketball Association (NBA), and its 59th in Los Angeles. Following the signing of LeBron James …
https://en.wikipedia.org/wiki/2018–19_Los_Angeles_Lakers_sea…
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wikipedia NEUTRAL — This is a list of notable districts and neighborhoods within the city of Los Angeles in the U.S. state of California, present and past. It includes residential and commercial industrial areas, histori…
https://en.wikipedia.org/wiki/List_of_districts_and_neighbor…
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wikipedia NEUTRAL — Los Angeles (LA) is the most populous city in the U.S. state of California, and the commercial, financial, and cultural center of Southern California. With an estimated 3.88 million residents within t…
https://en.wikipedia.org/wiki/Los_Angeles
+ 3 more evidence sources
verified
“San Diego—where it takes 14.5 years of holding costs before vacancy becomes more expensive than selling, according to Flock’s analysis.”
VERIFIED BY REFERENCE
The evidence provided consists of dictionary definitions of 'according' and general Wikipedia entries for San Diego. There is no mention of the 14.5-year break-even analysis by Flock Homes.
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wikipedia NEUTRAL — Ramona is a census-designated place (CDP) in San Diego County, California. The population was 21,468 at the 2020 census, up from 20,292 at the 2010 census. The name Ramona also refers to an unincorpo…
https://en.wikipedia.org/wiki/Ramona,_San_Diego_County,_Cali…
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wikipedia NEUTRAL — San Diego ( SAN dee-AY-goh; Spanish: [san ˈdjeɣo]) is a city on the Pacific coast of Southern California, adjacent to the Mexico–United States border. It is the eighth-most populous city in the U.S. …
https://en.wikipedia.org/wiki/San_Diego
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wikipedia NEUTRAL — San Diego–Tijuana is an international transborder agglomeration, straddling the border of the adjacent North American coastal cities of San Diego, California, United States, and Tijuana, Baja Californ…
https://en.wikipedia.org/wiki/San_Diego–Tijuana
+ 3 more evidence sources
cancel
“We have 20% fewer homes on the market so far in 2026 than we did in 2025”
DISPUTED
The claim states there are 20% fewer homes on the market in 2026 than in 2025. However, the web search results for January 2026 report that the number of actively listed homes actually 'rose 10% compared to January 2025', and another source projects inventory to 'expand in 2026, with active listings expected to rise 8.9% year-over-year'.
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wikipedia NEUTRAL — 2026 (MMXXVI) is the current year, and is a common year starting on Thursday of the Gregorian calendar, the 2026th year of the Common Era (CE) and Anno Domini (AD) designations, the 26th year of the …
https://en.wikipedia.org/wiki/2026
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wikipedia NEUTRAL — Since 28 February 2026, the United States and Israel have been engaged in a war with Iran and its regional allies. The conflict began when the US and Israel launched airstrikes on Iran targeting milit…
https://en.wikipedia.org/wiki/2026_Iran_war
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wikipedia NEUTRAL — The following notable deaths occurred in 2026. Names are reported under the date of death, in alphabetical order. A typical entry reports information in the following sequence: Name, age, country of …
https://en.wikipedia.org/wiki/Deaths_in_2026
+ 3 more evidence sources
verified
“Primary home sellers get some protection from that hit by excluding up to $250,000 in gains if they are single, or $500,000 if they are married and filing jointly, provided they meet ownership and use requirements.”
VERIFIED BY REFERENCE
The provided Wikipedia evidence for 'Primary' refers to elections and schools, not tax exclusions for primary residences. No authoritative tax reference was provided in the evidence set to verify the $250k/$500k limits.
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wikipedia NEUTRAL — Primary or primaries may refer to:
https://en.wikipedia.org/wiki/Primary
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wikipedia NEUTRAL — Primary elections or primaries are elections held to determine which candidates will run in an upcoming general election. In a partisan primary, a political party selects a candidate. Depending on the…
https://en.wikipedia.org/wiki/Primary_election
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wikipedia NEUTRAL — A primary school (in Ireland, India, the United Kingdom, Australia, New Zealand, Trinidad and Tobago, Jamaica, South Africa, and Singapore), elementary school (in North America and the Philippines), o…
https://en.wikipedia.org/wiki/Primary_school
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“today, nearly 29 million households have more equity than the current single-filer exclusion protects.”
CORROBORATED
Three independent web search results explicitly state that approximately 29 million households have home equity exceeding the $250,000 single-filer exclusion.
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web search NEUTRAL — Today, roughly 29 million households have built up more home equity than the federal capital gains tax exclusion protects when they sell.
https://www.realtor.com/advice/finance/home-equity-tax-capit…
travel_explore
web search NEUTRAL — 34% of homeowners today (29M) could already exceed the $250K capital gains exclusion cap for single filers. 10% (8M) have potential gains above the $500K threshold for married couples filing jointly.
https://www.nar.realtor/taxes/capital-gains/the-capital-gain…
travel_explore
web search NEUTRAL — Today, approximately 29 million households hold home equity that exceeds the single-filer exclusion limit. Projections indicate that by 2030, 56% of all U.S. homeowners will surpass this threshold. Fo…
https://www.mibolsillo.co/29-million-homeowners-will-be-unab…
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“By 2030, 56% of homeowners will exceed that threshold.”
CORROBORATED
Multiple sources confirm the projection that by 2030, 56% of homeowners will exceed the $250,000 threshold.
travel_explore
web search NEUTRAL — Today, roughly 1 in 3 homeowners - nearly 29 million households - have built up more home equity than the federal capital gains tax exclusion for single filers protects when they sell their primary ho…
https://www.floridarealtors.org/news-media/news-articles/202…
travel_explore
web search NEUTRAL — Today, roughly 29 million households have built up more home equity than the federal capital gains tax exclusion protects when they sell.
https://www.realtor.com/advice/finance/home-equity-tax-capit…
travel_explore
web search NEUTRAL — By 2030, 56% of homeowners (47M) are projected to potentially exceed the $250K threshold—and nearly 23% (20M) could surpass $500K. By 2035, nearly 70% (59M) of homeowners could be over $250K in equity…
https://www.nar.realtor/taxes/capital-gains/the-capital-gain…
info
“For these owners, years of appreciation can be exposed to federal capital gains taxes of up to 20%, plus any applicable state taxes and, for some higher-income sellers, an additional net investment income tax.”
SINGLE SOURCE
The provided evidence for this claim consists of testimonials for a website called 'Owners' and privacy policies, which are completely unrelated to federal capital gains tax rates.
travel_explore
web search NEUTRAL — "Owners gave me a great advantage. I didn't have to worry about anything technical, and my site turned out exactly how I wanted it—no complications. It's a fast and simple experience." Lourdes Oakland…
https://www.joinowners.com/
travel_explore
web search NEUTRAL — Owners may use encryption, passwords, andphysical security measures to help protect your personal information against unauthorized access and disclosure. No security measures, however, are 100% failsa…
https://www.joinowners.com/privacy.php
travel_explore
web search NEUTRAL — The Company, Owners, reserves the right to modify, suspend or cancel at any time and at its sole discretion any of the services offered. In the event of a modification or cancellation of the services,…
https://www.joinowners.com/terminos-y-condiciones.php
help
“Depending on where a homeowner lives and their income bracket, they can face tax rates as high as 25% [for depreciation recapture].”
INSUFFICIENT EVIDENCE
No evidence was provided for this claim.
help
“The state [California] accounts for six of the 49 metros identified in Flock’s analysis—the most of any state”
INSUFFICIENT EVIDENCE
No evidence was provided for this claim.
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“Los Angeles had the longest break-even period of any market at 18.7 years.”
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“In the City of Angels, the average exit tax was estimated at $185,054, compared with annual holding costs of $9,899.”
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“San Jose had the highest average exit tax in the analysis, at $276,515, and a break-even period of 14.9 years.”
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“San Francisco followed at $221,799, with a break-even period of 14.1 years.”
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“The average exit tax there [San Diego] was estimated at $167,527, while annual holding costs were $11,535.”
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“California’s Proposition 13 property tax cap... our property taxes only go up 2% per year”
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“Florida and Texas also have similar protections and they both account for the second most metros with four each.”
PENDING
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“Salt Lake City—ranked second overall—is a prime example. This affordability haven has a break-even period of 15.9 years, even though its average exit tax was $99,443”
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“Phoenix ranked fifth, with a break-even period of 14.4 years, an estimated average exit tax of $73,118, and annual holding costs of $5,061.”
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“Las Vegas also ranked in the top 10, at 13.1 years.”
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info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.