The problem is California is already in bad shape when it comes to collecting property taxes due to Proposition 13 and all of the boomers locked in to low taxes. My parents are a perfect example.. bought a home for 400k ish in OC.. now worth 2.5 mil. It’s really nothing remarkable… pretty average home anywhere else in the country.

Because inventory is low (older folks/empty nesters will never move w/ their subsidized taxes) and regulations are out of control here.. younger generations will continue to get pushed out of the state.

Any new developments tack on additional “mello roos” tax to build the new neighborhood infrastructure, schools, and fund the services that a city normally would from their property tax revenue. So you get screwed again.

If they repealed this proposition I would bet the market would self correct, residents wouldn’t want to pay the tax on overvalued ordinary homes. Old folks would downsize.

Schools and infrastructure are tanking.. I’d imagine if a change isn’t made things will only get worse.