It's not just prop13 and it's not just in California. The Federal reserve has been buying mortgage backed securities to keep the market from correcting (similar

It's not just prop13 and it's not just in California. The Federal reserve has been buying mortgage backed securities to keep the market from correcting (similar to ~2008.) Because of this you can finance the construction and sale of small amounts of luxery space without having to worry nearly as much about being able to rent it for a profit. Essentially we have insane inflation but it's been carefully architected to only really affect real estate.