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by vedanta 3258 days ago
Prop 13 affects all of CA, you don't see prices in LA going up 100% in 3-5 years like you do in most south bay cities.
1 comments

LA hasn't seen anything like the VC / tech boom that the bay area is currently in. Prop 13 reduces liquidity, but that doesn't automatically have an outsized effect on prices. It's only when a market is illiquid and there's a huge spike in demand that you see ridiculously negative effects like this.
Prop 13 is a factor: http://lao.ca.gov/Publications/Report/3497#Does_Proposition....

And overturning it for commercial real estate won't do much to help housing prices, except for any re-zoning that happens. Overturning prop 13 or amending it might not happen for 5+ years, if ever. Note: https://www.bizjournals.com/sanjose/news/2017/07/19/californ...

Over the short, medium, and long-term then, building more is the only choice (SB 35, AB 71). Since you see prices not increasing as much in other parts of the state, it means building more can in fact keep prices down, as the deep-east bay construction shows.

True, but Seattle is seeing large increases in housing prices do to low inventory as well. Maybe it will play out different in the long term vs the bay area?