Because of Prop 13. http://projects.scpr.org/prop-13/stories/housing-shortage/ http://projects.scpr.org/prop-13/stories/housing-shortage/ has a good write up.

Because of Prop 13. http://projects.scpr.org/prop-13/stories/housing-shortage/ http://projects.scpr.org/prop-13/stories/housing-shortage/ has a good write up. 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* in city centers and dilapidated shacks* next to Google's global HQ. 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. Slashing property taxes always floods the market with speculators and destroys housing affordability. Look at Vancouver, or Malta, their housing shortages rival SF despite low wages and comparatively small economies. * 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... * https://www.theguardian.com/technology/2016/dec/15/google-campus-silicon-valley-farm-martinellis https://www.theguardian.com/technology/2016/dec/15/google-ca...