4 ms·
> 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 b
by 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.