You're mistaken in your mechanism: it reduces demand. Repealing prop 13 should drive down prices by increasing the total cost of ownership. Suppose you can affo

You're mistaken in your mechanism: it reduces demand. Repealing prop 13 should drive down prices by increasing the total cost of ownership. Suppose you can afford to pay $3000/mo for housing. If your tax bill is $500, that leaves $2500 for a mortgage payment. Higher taxes, less is leftover for a mortgage. With a $500/mo tax your maximum mortgage is $530k. If it rises to $700/mo, your maximum mortgage falls to $486k. The whole pool of people with a $3000/mo reserve have been pushed down the curve.