This is the natural effect of the passage of Proposition 13. When you cannot raise real estate taxes to keep up with inflation, residential real estate becomes

This is the natural effect of the passage of Proposition 13. When you cannot raise real estate taxes to keep up with inflation, residential real estate becomes a liability for governments, not an asset. California has had to turn to business development to make up for the short fall. From an economic perspective, the government has a high demand for commercial development, and a low demand for residential development.