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The national average is $21k, so really it's $29k you're out over what the rest of the country charges. Which is not ideal, but on a $600k+ ($29k is 5% or less
by x0x0 10y ago
The national average is $21k, so really it's $29k you're out over what the rest of the country charges.
Which is not ideal, but on a $600k+ ($29k is 5% or less) home, let alone a $1m home, that simply isn't the primary cost driver.
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The whole article seems like it's poorly written or actively attempting to mislead. It's not until 1/2 way through that you learn:
Prop 13 stymies local tax increases, which means housing is an enormous cost for cities because they can't recoup their costs through property taxes. Instead, taxes go to the state government.
I dunno, could you imagine that severing the link between new development which increases local costs (schools, roads, utilities, police) and local income could affect cities' interest in building housing? Unlike complaints about environmental impact costs, this seems like a much more plausible explanation for the lack of housing.
Then the article finally explains that building impact fees are the only way local cities have to recoup their direct costs, which explains their rise. Why wasn't that in the first 1/2 of the article?
Also, prop 13 means rising prices are all to the good for home owners. In most (all?) other states, rising property prices mean homeowners pay more tax, which creates an incentive for homeowners to oppose too large an increase in home prices.
Finally, the complaining about the Zero Net Energy mandate is misleading as well when it presents it only as a negative. A few minutes research will show that it's intended to curb the growth of energy requirements. Power plants are big, expensive, and tend to pollute a lot. If we want to have 45m people in CA, we have to be judicious about how much pollution our state can withstand. And someone has to pay for those new power plants we will have to bring online if we don't curb power usage growth.
- Gibbon1 10y ago> Why wasn't that in the first 1/2 of the article? Because the authors hope you never read that far. I was 15 when Prop 13 passed. My feeling back then was that despite the spouted wisdom of the adults around me that Prop 13 1. Wouldn't 'force the government to cut wasteful spending' Which is to say the government doesn't spend money on anything that doesn't have a powerful interest group behind it. Wave your arms as much as you want but those people aren't going to go away. 2. The government would make up for lost tax revenue by imposing nickel and dime fees on everything. 3. Also raise fines for just about any small infraction. 4. #2 & #3 being less efficient ways to raise revenue would lead in increases in government spending. 5. Wouldn't make housing more affordable, but instead would create a two classes winners and losers. #5 is because of my belief that housing prices reflect how much people have to spend minus costs like maintenance and taxes, divided by the interest rate. Reduce taxes and the price just goes up. Bonus, local tax revenue tends to stay in the local economy creating local demand. Interest on debt is paid to the bond holders few of which are local.