Originally Posted by ohaiyo

Here is a fun tool to experiment with. It's some research project a college kid did that shows the effects of prop 13 on the California real estate market.

https://www.officialdata.org/ca-property-tax/
https://www.officialdata.org/ca-prop...61221313478,19

You can zoom in on any neighborhood you like and you can see the property tax differential that is in effect across the entire state. The effects of this tax law are felt across the board, though prop 13's responsibility for causing those effects, IMO, is not well understood. Most states' tax laws tax real-estate equally. This one does not.

One of it's biggest effects is to discourage selling a home if you're a long-time owner. It makes much more sense to keep it and rent it out at market rate indefinitely than it does to sell it. It's created an artificial scarcity, and we all know econ 101 supply and demand. This, more than anything else - including CA's restrictive and onerous regulatory environment - is what makes home ownership in CA so difficult for new comers.