Re:San Francisco's zoning makes it illegal to build apartmen...
by hodgesrm on Thursday July 19, 2018 @01:57PM
(#17568802)
> Oddly, those same single family home owners would become rich if they could subdivide their properties for intensive development.
It's not just zoning though.
There is also California's infamous Proposition 13 and other market distorting tax breaks. Prop 13 limited real estate tax increases to 2% annually, which is far less than the property appreciation rate for San Francisco in recent times. If you sell out and want to move to another single-family home in the region you may have substantially higher taxes. See the following article for a discussion of prop 13 effects, tweaks on prop 13, as well as other tax breaks.
It's not just zoning though.
There is also California's infamous Proposition 13 and other market distorting tax breaks. Prop 13 limited real estate tax increases to 2% annually, which is far less than the property appreciation rate for San Francisco in recent times. If you sell out and want to move to another single-family home in the region you may have substantially higher taxes. See the following article for a discussion of prop 13 effects, tweaks on prop 13, as well as other tax breaks.
https://www.bloomberg.com/view/articles/2018-07-15/tax-cuts-...
No matter how you cut it the incentives are politically hard to unwind.