Because of Prop 13 tax increase year to year is limited to inflation or 2% increase (whichever is lower). So yes, you start with ~1% of the house value but with

Because of Prop 13 tax increase year to year is limited to inflation or 2% increase (whichever is lower). So yes, you start with ~1% of the house value but with 7% average increase in property value and limited to 2% increase in tax value you end up banking most of that property value increase.