4 ms·
This isn't just zoning, it's so much more. 1) California's Prop13 discourages redevelopment. 2) Federal Reserve policies encourage housing speculation. 3) Calif
by oppositelock 9y ago
This isn't just zoning, it's so much more. 1) California's Prop13 discourages redevelopment. 2) Federal Reserve policies encourage housing speculation. 3) California is filled with NIMBY's who have an arsenal of tools to stop development, usually some kind of overbroad environmental review process. 4) City councils tend to approve higher-end luxury development because it brings in more taxes. 5) Developers tend to build higher end units because of bigger per/unit profits. Usually, cheaper housing is older housing, but not in CA where there's a shortage.
- hkmurakami 9y agoRegarding (2), the mortgage tax deduction and the primary residence capital gains reduction (and/or the cap gains carryover into next property) all contribute to the speculative behavior.