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Tax incentives for investors may explain why the price of low-value homes increased faster. Negative gearing remains a popular investment strategy; about 1.3 million landlords reported collective losses of $11 billion in 2014-15. Many investors prefer low-value properties because they pay less land tax as a proportion of the investment. For example, an investor who buys a Sydney property on land worth $550,000 pays no land tax, whereas the same investor would pay about $9,000 each year on a property on land worth $1.1 million. Rising housing costs also hurt low-income renters As this last chart shows, more low-income households (the bottom 40 per cent of income earners) are spending more than 30 per cent of their income on rent (often referred to as "rental stress"), particularly in our capital cities. In comparison, only about 20 per cent of middle-income households who rent are spending more than 30 per cent of their income on rent.