3 ms·

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.

by rcpt 8y ago

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...

oh_hello 8y ago
It also forces individual home owners into a corner. Anecdotally, I have a friend who bought in the 90s for peanuts and now his house is easily worth more than a million dollars. He has specifically said something along the lines of "we would like to move to something that fits our family a little better, but it wouldn't be worth the tax bill."
gedy 8y ago
That's nonsense, prices were ballooning in California before Prop 13, and was in response the great inflation in the 70s. Property taxes do go up in California, just not at the speculative price increases due to tiny interest rates and investors. If you want to find fault, blame interest rates and people paying the maximum monthly payment based on tiny interest rates, and ignoring the ridiculous house prices.

by rcpt 8y ago

oh_hello 8y ago

It also forces individual home owners into a corner. Anecdotally, I have a friend who bought in the 90s for peanuts and now his house is easily worth more than a million dollars. He has specifically said something along the lines of "we would like to move to something that fits our family a little better, but it wouldn't be worth the tax bill."

gedy 8y ago

That's nonsense, prices were ballooning in California before Prop 13, and was in response the great inflation in the 70s. Property taxes do go up in California, just not at the speculative price increases due to tiny interest rates and investors. If you want to find fault, blame interest rates and people paying the maximum monthly payment based on tiny interest rates, and ignoring the ridiculous house prices.