5 ms·

For most owners, there is no tipping point. Their house payments are fixed based on when they purchased the house, not on its appreciation since then.

jcater 10y ago
Only if property taxes remain constant (which I guess may be true in parts of the country.)
stinkytaco 10y ago
Property taxes. In most places where property value growth is fast, tax relief does not keep up. And it can become a significant part of your home's upkeep, especially if you own it and have been there for some time. Rapid growth in value disproportional effects residents on fixed incomes. This is not a problem unique to San Fransisco, but to all "boom towns", large and small. Additionally, services you once were able to afford such as parking, grocery stores, restaurants, etc. become expensive quickly. Think having your bodega replaced by a Whole Foods.
- afuchs 10y ago
  Aren't property tax increases in the state of California limited by Proposition 13? https://en.wikipedia.org/wiki/California_Proposition_13_(1978) https://en.wikipedia.org/wiki/California_Proposition_13_(197...
- Johnny555 10y ago
  Thanks to California's Prop13 that caps how fast assessed property values can be raised to 2%/year, this isn't much of an issue in SF - once you're in your house, property tax is not going to make it unaffordable.
  - stinkytaco 10y ago
    That's good for California. But if we are to generalize this problem, many states don't have that. Still, it's a good policy and I wish my state would pursue it. The oil boom priced many people out of their homes.
    - carapace 10y ago
      Many people see it as bad for California. We're foregoing tons of tax revenue and warping real estate markets. There are always trade-offs.
      - davidw 10y ago
        Here's one article: http://www.slate.com/blogs/moneybox/2016/09/22/california_s_proposition_13_is_bad_policy_and_here_are_some_graphs_to_show.html http://www.slate.com/blogs/moneybox/2016/09/22/california_s_... There are plenty more.

jcater 10y ago

Only if property taxes remain constant (which I guess may be true in parts of the country.)

stinkytaco 10y ago

Property taxes. In most places where property value growth is fast, tax relief does not keep up. And it can become a significant part of your home's upkeep, especially if you own it and have been there for some time. Rapid growth in value disproportional effects residents on fixed incomes. This is not a problem unique to San Fransisco, but to all "boom towns", large and small. Additionally, services you once were able to afford such as parking, grocery stores, restaurants, etc. become expensive quickly. Think having your bodega replaced by a Whole Foods.

afuchs 10y ago
Aren't property tax increases in the state of California limited by Proposition 13? https://en.wikipedia.org/wiki/California_Proposition_13_(1978) https://en.wikipedia.org/wiki/California_Proposition_13_(197...
Johnny555 10y ago
Thanks to California's Prop13 that caps how fast assessed property values can be raised to 2%/year, this isn't much of an issue in SF - once you're in your house, property tax is not going to make it unaffordable.
- stinkytaco 10y ago
  That's good for California. But if we are to generalize this problem, many states don't have that. Still, it's a good policy and I wish my state would pursue it. The oil boom priced many people out of their homes.
  - carapace 10y ago
    Many people see it as bad for California. We're foregoing tons of tax revenue and warping real estate markets. There are always trade-offs.
    - davidw 10y ago
      Here's one article: http://www.slate.com/blogs/moneybox/2016/09/22/california_s_proposition_13_is_bad_policy_and_here_are_some_graphs_to_show.html http://www.slate.com/blogs/moneybox/2016/09/22/california_s_... There are plenty more.