It indirectly does though. Because property tax in california is always taxed at the amount you purchased your house at (as opposed to what your house is curre

It indirectly does though. Because property tax in california is always taxed at the amount you purchased your house at (as opposed to what your house is currently worth at), it incentivizes immobility. If you bought your house a decade ago it's going to be worth WAY more now than it is now. In a healthy market you might then either try to roll that extra equity into another place by either upsizing to get something that more fits your needs, or downsizing if that makes sense. However, because of the property tax mechanisms if you move from a $1m house to another $1m house your property taxes will go up substantially even if it is a side grade. That means that you are less likely to move (in fact you may not be able to afford even a side grade depending on your circumstances). This keeps housing inventory low, which keeps prices rising.