Re:California's housing bill SB 50 has died in the state Senate
by Gibbon1 on Thursday January 30, 2020 @08:35PM
(#22198148)
My thought on that is prices reflect the ability of people to pay principal, interest, taxes, and maintence. Lower the property tax rate and prices just go up. Difference is taxes go to pay for public goods and services. Principal and interest do not.
Prop 13 benefits corporations, long term property owners, and people that inherit property. At the expense of renters, new home buyers, and beneficiaries of public goods and services.
But that's also largely a factor of mostly high-income people moving in, while mostly lower-income people are moving out. Keep up the business climate that fuels the inward funnel of money, and you'll keep prices high. Even if you reduce restrictions to building supply, you'll have a game theory bit of not lowering prices in any hurry since people can so clearly afford them and are so clearly willing to pay them.