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It drives home prices up by reducing velocity of home sales because people can afford to stay longer without higher taxes. The issue that seems to have develop

It drives home prices up by reducing velocity of home sales because people can afford to stay longer without higher taxes. The issue that seems to have developed is that towns are building commercial property, as it brings in sales taxes or payroll taxes which total a lot more than property taxes

dv_dt 7y ago
> It drives home prices up by reducing velocity of home sales because people can afford to stay longer without higher taxes. Why? It doesn't change the total inventory, nor the ratios of how many want a home vs have a home. > The issue that seems to have developed is that towns are building commercial property, as it brings in sales taxes or payroll taxes which total a lot more than property taxes Commercial property also includes apartment complexes too doesn't it? In my town there is an excess of commercial retail and office property, and builds are shifting to apts/condos as far as I can tell.
- sgc 7y ago
  It does change the ratios of who wants a home since it makes a better investment. IMO prop 13 should only apply to primary residence.
  - dv_dt 7y ago
    I fully agree that Prop 13 should only apply to primary residences! But I fundamentally think it's wishful & unexamined leaps of thinking that repealing all of prop 13 would somehow lower home prices. I think it's repeal would just cause unnecessary churn in where people live, increase the speed of gentrification, without holding back home prices at all.
    - bradlys 7y ago
      Your argument is that more available supply on the market would cause home prices to increase. In econ 101 terms - That doesn't make sense. More supply -> cost goes down. Lower incomes would actually be better off because it would mean that more properties would sell, lowering the price of homes, and thus rentals would have to come down in price too. Churn in housing market could lead to more housing developments as well - since you have to pay full price of the land you are just sitting on. You'd be better off developing the land than just sitting on an empty lot and paying lots of property tax.
      - deleted 7y ago
        [deleted]
    - sgc 7y ago
      I just think it's repeal would be absolutely cruel to people who lived and worked in California their whole lives, making much of what it is today, but can't afford to pay today's prices because their salaries were not what people now make here. So irrespective of what the effects would be, it smacks of flagrant injustice.

dv_dt 7y ago

> It drives home prices up by reducing velocity of home sales because people can afford to stay longer without higher taxes. Why? It doesn't change the total inventory, nor the ratios of how many want a home vs have a home. > The issue that seems to have developed is that towns are building commercial property, as it brings in sales taxes or payroll taxes which total a lot more than property taxes Commercial property also includes apartment complexes too doesn't it? In my town there is an excess of commercial retail and office property, and builds are shifting to apts/condos as far as I can tell.

sgc 7y ago
It does change the ratios of who wants a home since it makes a better investment. IMO prop 13 should only apply to primary residence.
- dv_dt 7y ago
  I fully agree that Prop 13 should only apply to primary residences! But I fundamentally think it's wishful & unexamined leaps of thinking that repealing all of prop 13 would somehow lower home prices. I think it's repeal would just cause unnecessary churn in where people live, increase the speed of gentrification, without holding back home prices at all.
  - bradlys 7y ago
    Your argument is that more available supply on the market would cause home prices to increase. In econ 101 terms - That doesn't make sense. More supply -> cost goes down. Lower incomes would actually be better off because it would mean that more properties would sell, lowering the price of homes, and thus rentals would have to come down in price too. Churn in housing market could lead to more housing developments as well - since you have to pay full price of the land you are just sitting on. You'd be better off developing the land than just sitting on an empty lot and paying lots of property tax.
    - deleted 7y ago
      [deleted]
  - sgc 7y ago
    I just think it's repeal would be absolutely cruel to people who lived and worked in California their whole lives, making much of what it is today, but can't afford to pay today's prices because their salaries were not what people now make here. So irrespective of what the effects would be, it smacks of flagrant injustice.