Higher taxes generally reduce property prices. As the carrying costs get higher, only those who can make efficient use of property (or who really want to live there) can justify the payments. In other words, it reduces the profits of income properties (be they long term rentals or short term rentals), which reduces the demand for the properties as a source of income, thus decreasing the cost (in spite of the higher taxes!) for people who want to live there. It also reduces speculative holding of property: again because the taxes paid while the speculator waits for prices to rise make it less likely that the speculator will profit, so they will go elsewhere looking for profits.