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ape Cod is weighing a 2 % transfer fee on luxury homes priced above $2 million to tackle its housing crunch. The Barnstable County Assembly of Delegates estimates the levy would bring in roughly $56 million annually, earmarked for affordable, year‑round housing. Deputy Speaker Daniel Gessen said the measure is “the scaffolding” needed to confront the crisis that threatens community cohesion.

    The region’s wealth gap is stark. While the median household income sits at $89,893—only slightly above the national median—median home sales in Barnstable County hit $730,000, far above the national $442,992 average. In Chatham, a southeastern Cape Cod town, the median price climbs to $1,142,000. “A family must earn more than double the average income to afford a typical home,” Gessen warned, calling the situation unsustainable.

    Support for the tax comes from business leaders, county officials, housing advocates, and the Cape Cod Chamber of Commerce. Chamber CEO Paul Niedzwiecki noted that nearly 30 % of the workforce commutes into the Cape daily and cautioned that without decisive action the area could lose its middle class.

    Real‑estate agent Alfred Schofield reports growing anxiety among affluent sellers. “I’m hearing a lot of nervous calls,” he told Business Insider. Some owners are rushing to close deals before the tax takes effect, while others are holding on, hoping the market stabilizes. Schofield predicts that sellers may try to embed the extra cost into the sale price, potentially driving up home values.

    The proposal does not single out second‑home owners, but a 2022 assessment by JM Goldson LLC found that at least 33 % of Barnstable homes are vacation properties. Rhode Island’s “Taylor Swift Tax” already imposes a $2.50 levy for every $500 of assessed value over $1 million on second homes, a model that may influence local sentiment.

    Schofield, a lifelong resident, expressed concern that the tax could deter year‑round living. “I hope it won’t push people away from living here permanently,” he said. “The Cape’s unique character comes from its blend of seasonal and permanent residents.”

    The proposed tax aims to generate revenue for affordable housing projects while preserving the area’s economic vitality. Its success will hinge on balancing the needs of long‑term residents, seasonal visitors, and the broader housing market.