[slezakattack]

You mean like retirees like baby boomers or way in the future retirees? As long as Prop 13 stays around, you have quite a few retirees who've been in their current home for 40+ years and only pay like $700 in property taxes a year. They won't go anywhere and in fact are incentivized to stay.

[nugget]

Today, when a house in SFBA is $2 million and a comparable house in Arizona is $400k, yes. But if prices continue to diverge, then the math could change. What happens if trends continue and SFBA is $4 million and Arizona is $600k? The foregone return on "dead" home equity (once prices do hit a ceiling and appreciation slows) can rapidly outpace any differential in property taxes.

IIRC there's also some portability of proposition 13 tax basis within California, which would allow retirees to relocate intrastate, which would presumably create inflationary pressure in those secondary housing markets.