4 ms·

We need some big strokes to fix this. Personally I think the long-term solution, at least in CA, is for the state to buy out owners in critical areas, taking l

We need some big strokes to fix this. Personally I think the long-term solution, at least in CA, is for the state to buy out owners in critical areas, taking land with eminent domain as a last resort, then selling the land back to developers on the condition that density is tripled or quadrupled. That's the only way to move the needle. Doesn't everyone ask you, when visiting from out of state, "why don't you guys just build up?"

rcpt 8y ago
In California we could easily solve the housing shortage by eliminating prop 13. Because land isn't taxed based on it's current value landowners have little incentive to develop their land in order to get the most out of it. They simply bank land as much as possible as it's the most surefire way to turn a profit. It's why we have golf courses (https://www.planetizen.com/node/93284/la-country-clubs-taking-more-their-share-and-paying-less https://www.planetizen.com/node/93284/la-country-clubs-takin...) in city centers, dilapidated shacks (https://www.theguardian.com/technology/2016/dec/15/google-campus-silicon-valley-farm-martinellis https://www.theguardian.com/technology/2016/dec/15/google-ca...) next to Google's global HQ, and empty lots (https://www.zillow.com/homedetails/811-Pelton-Ave-Santa-Cruz-CA-95060/96053991_zpid/ https://www.zillow.com/homedetails/811-Pelton-Ave-Santa-Cruz...) right on the beach in Santa Cruz. Additionally, prop 13 gives landowners every incentive to lobby for policies that restrict development in order to drive up prices instead of fighting for the right to build 4 story apartments on their property. Impact fees are too high because cities can't rely on property tax. This stops all but the most luxurious developments: https://lao.ca.gov/publications/report/3497#Did_Proposition.A013_Increase_Fees_on_Developers.3F_ https://lao.ca.gov/publications/report/3497#Did_Proposition.... And then there's the fact that prop 13 transfers wealth from young to old, from poor and middle-class to rich, from black and Latino to white, and from renter to owner (http://www.betterinstitutions.com/blog/2015/07/prop-13-california-broken-property-tax-part-1 http://www.betterinstitutions.com/blog/2015/07/prop-13-calif...). Making it harder for people to save up in hope of buying one day.
- amanaplanacanal 8y ago
  Yes. I understand why prop 13 was passed, it was in a time of high inflation, and the increased valuations meant that property taxes had a huge impact, especially on retired people with fixed incomes. But all the downstream effects of that have made rather large distortions in the housing market.

rcpt 8y ago

In California we could easily solve the housing shortage by eliminating prop 13. Because land isn't taxed based on it's current value landowners have little incentive to develop their land in order to get the most out of it. They simply bank land as much as possible as it's the most surefire way to turn a profit. It's why we have golf courses (https://www.planetizen.com/node/93284/la-country-clubs-taking-more-their-share-and-paying-less https://www.planetizen.com/node/93284/la-country-clubs-takin...) in city centers, dilapidated shacks (https://www.theguardian.com/technology/2016/dec/15/google-campus-silicon-valley-farm-martinellis https://www.theguardian.com/technology/2016/dec/15/google-ca...) next to Google's global HQ, and empty lots (https://www.zillow.com/homedetails/811-Pelton-Ave-Santa-Cruz-CA-95060/96053991_zpid/ https://www.zillow.com/homedetails/811-Pelton-Ave-Santa-Cruz...) right on the beach in Santa Cruz. Additionally, prop 13 gives landowners every incentive to lobby for policies that restrict development in order to drive up prices instead of fighting for the right to build 4 story apartments on their property. Impact fees are too high because cities can't rely on property tax. This stops all but the most luxurious developments: https://lao.ca.gov/publications/report/3497#Did_Proposition.A013_Increase_Fees_on_Developers.3F_ https://lao.ca.gov/publications/report/3497#Did_Proposition.... And then there's the fact that prop 13 transfers wealth from young to old, from poor and middle-class to rich, from black and Latino to white, and from renter to owner (http://www.betterinstitutions.com/blog/2015/07/prop-13-california-broken-property-tax-part-1 http://www.betterinstitutions.com/blog/2015/07/prop-13-calif...). Making it harder for people to save up in hope of buying one day.

amanaplanacanal 8y ago
Yes. I understand why prop 13 was passed, it was in a time of high inflation, and the increased valuations meant that property taxes had a huge impact, especially on retired people with fixed incomes. But all the downstream effects of that have made rather large distortions in the housing market.