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Ah yeah, another huge problem that I forgot to mention. This really kills the liquidity of the market. You see the same dynamic with sales in CA due to Prop 13
by ericd 7y ago
Ah yeah, another huge problem that I forgot to mention. This really kills the liquidity of the market. You see the same dynamic with sales in CA due to Prop 13 - this makes it so that elderly people can’t afford to downsize, because their property taxes would go up 10-20x for many of them if they moved to an equivalent place, and it’s economical for people to sit on extremely valuable undeveloped land and wait for it to appreciate, because there’s next to no holding cost.
- hwio 7y agoIf there weren't for things like rent control or prop 13 those people would just be suffering anyway as rents or property values would increase where they live as well. So I don't see that argument making much sense. Thing like prop 13 is probably damaging because it inflates property values however.