The idea of being priced out in this scenario is a weird notion to me since it implies that other people will be priced in. High earners aren't going to come and pay Manhattan rents in JC because of taxes and people aren't as likely to buy a place with such high taxes. I'm thinking about buying a place next year and was considering JC till I started learning more about the tax situation. Now, it's far removed from the list. If prices were going up because of improvements and market shifts, thats one thing, but this is just poor city management.

It's more likely imo that prices stay about the same while values rapidly decrease. Rents may go up in the short term, but I'd imagine landlords will end eating a lot of the increases for at least a few years.