[epistasis]

Prop 13 causers real estate values to rise much faster than they would have otherwise , by restricting the productive use of the land. It incentivizes land owners to not build and to not transfer land to someone who could make better use of it.

When it's a broad, general effect that covers an entire stateC that causes prices to rise much faster than they would have risen without Prop 13.

Prop 13 is one of the major causes of people "paying too much money," whatever that means. No purchaser wants to pay too much. The seller is the one setting the price when it is high, and Prop 13's incentives for speculation are what gives sellers so much market power to extort purchasers.