The challenge here is that you reinforce the spiral. There are indeed communities with levy rates of 18-25%+ but it is generally a sign the community is financially insolvent. The individual and community incentives are in conflict.
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That is in the current paradigm. If house prices fall because they no longer need to be stored of value higher % rates would not necessarily signal the same thing that they do now.
Say the current rate is 4% which = $1000. If house prices fall so that $1000 is now 25% the actual dollar value being paid is the same but the house prices are more affordable.
Or am I missing something?