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The effects of prop 13 are overstated. The problem is California didn't build enough where people want to live. Many states have laws restricting property tax
by ryathal 2y ago
The effects of prop 13 are overstated. The problem is California didn't build enough where people want to live. Many states have laws restricting property tax growth, my own state limits it to the lesser of inflation or 5%. It's the lack of building that pushed prices so high that selling only makes sense to leave the state.
- HDThoreaun 2y agoNo, the effects of prop 13 are not overstated. NIMBYism is a bigger problem, but prop 13 makes it financially reckless to ever move. Yimby policy would lead to less drastic divergence between value and tax rate as value increases slower, but there would still be a gap as people who bought SFHs in the town center would see the properties value grow due to the lack of land value tax.
- ryathal 2y agoIt's not prop 13 that made property values 10x in the last 30 years. It's the lack of supply forcing bids ever higher. Downsizing and rebasing taxes isn't a big deal if you went from a 1980s 100k 4-bedroom house to a modern 300k 2-bedroom condo, it's a huge problem if the cheapest option is over 1 million.