I'm saying that increased taxes cause landlords to try to increase rent or exit the rental market due to the increased expense, leading to decreased rental supply at a higher average cost. In a competitive rental market, you are renting the property for pretty much exactly what it costs you to rent it. If free money rained from the sky by pushing the "rent" button, more people would do it, increasing supply, and decreasing cost.
Similarly, lowering the tax rate would provide greater profit to landlords, which would cause new entrants to the rental market, leading to greater supply and a lower average cost.
That's just the basic theory of competitive markets, at least as I remember it. It starts with the 'X' shaped chart of supply vs demand which you draw over and over in Microeconomics 101. Macro takes the concepts from Micro and connects the dots to get from increasing taxes -> higher rental prices.
Similarly, lowering the tax rate would provide greater profit to landlords, which would cause new entrants to the rental market, leading to greater supply and a lower average cost.
That's just the basic theory of competitive markets, at least as I remember it. It starts with the 'X' shaped chart of supply vs demand which you draw over and over in Microeconomics 101. Macro takes the concepts from Micro and connects the dots to get from increasing taxes -> higher rental prices.