> By "rapidly" I mean on the span of a few years. If your neighbor subdivides their lot, the smartest thing for you to do is subdivide yours If you are an abse

> By "rapidly" I mean on the span of a few years. If your neighbor subdivides their lot, the smartest thing for you to do is subdivide yours If you are an absentee landlord, sure. If you are a homeowner, then, you probably already chose your living arrangement over living in a smaller apartment while being the landlord of several other smaller units, and the reasons you choose that probably still apply. And because there are people who prefer larger single family homes, as the supply of those drops, the value of the existing ones goes up (not as much as the value of subdivided lots, but the increase in value is—unlike that on a lot that you subdivide and improve—mostly-untaxed because Prop 13 full-value assessment is triggered by change of ownership or nee construction, not market appreciation driven by supply.) So, as a homeowner, the smart thing to do—absent a change in living situation that changes why you became a homeowner—the smart thing to do when some neighbors convert is to enjoy the tax-free value boost, take advantage of the increase value-to-loan ratio to refi at more favorable terms if you have a mortgage, or take money out for other projects, etc., or... whatever.