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Great point. Prop 13 creates a lot of illiquidity/friction that probably keeps people in places they wouldn’t stay in otherwise. Not just old folks. It’s probab
by opportune 4y ago
Great point. Prop 13 creates a lot of illiquidity/friction that probably keeps people in places they wouldn’t stay in otherwise. Not just old folks. It’s probably just as much of a problem for people who inherit property or get a job an hour away.
Prop 19 passed in 2020 IIUC partially solves the problem you mention because people 55+ can maintain lower tax rates after moving, but of course it is just a bandaid. Definitely the better solution would be for the real estate market to not be so expensive that people can’t afford to move/live in the general type of housing they want though.
- acdha 4y ago> It’s probably just as much of a problem for people who inherit property or get a job an hour away. My knowledge is stale - I moved away from California a decade ago - but I think you’re right about downsizing at least to the extent that they can actually find a cheaper place.