2 ms·
> the superior option for an owner Agree with you, but I would guess most of the Gigafactory workers who haven’t exercised stock options probably can’t afford
by thephyber 5y ago
> the superior option for an owner
Agree with you, but I would guess most of the Gigafactory workers who haven’t exercised stock options probably can’t afford to own in the Bay Area.
While Prop 13 probably filters down to renters in reduced rent, the supply/demand issues for housing is still pretty out of whack even with all of the new units in Milpitas. Also Prop 13 has second order effects that keep older empty nester boomers in a large house even though they would otherwise downsize if they didn’t lose such a generous benefit.
- rcpt 5y ago> Prop 13 probably filters down to renters in reduced rent It doesn't. Rent is set by the market. New and old landlords have drastically different tax rates but charge roughly the same rent. Same deal with gas stations: you can't figure out how much property tax they're paying based on the price at the pump. In fact one of the main reasons California has rent control is that Howard Jarvis promised renters that landlords would be nice and pass along the cuts. Of course this was a lie and in the early 80s cities lashed out with rent control in response.
- refurb 5y agoIt kind of does but more in a political way. Property taxes on commercial property are also frozen and the trade off was rent control for tenants. But you are right that the rental and home sale markets are entirely different. Owning costs more than renting in SF by a large margin.