price controls is rent control. SF. see also: NYC
"you can raise rent by X% per year AT MOST, no more than that"
if inflation / supply/demand is >X%, the landlord eats it.
Thus landlording might be for some, more appealing elsewhere.
Cali also has prop 13 i.e. rent control on real estate taxes. So if I bought my house in 1955, I might pay $100/year in property tax, the guy who just bought a completely identical house next door this year might pay $15,000 a year in property tax. On basically the same house. How is that fair? kinda a boomer "I got mine" type mentality. Also part of the bay area real estate problem, in addition to zoning/byzantine planning, borken process - why would anyone want to move out?!? Moving out would mean +$15,000/year tax, every year. Just stay put.
Of note in Singapore there's not really the concept of "apartment building" business and it works fine (very dense NYC tier housing there). The reason why is the more "units" you own, taxes become progressively more brutal, an apartment building would be tax armageddon. So most rentals are a person who owns a few condo type units and rents them, few enough that taxes aren't bad. Most people aim for owning, and for owning there is a private sector but a public government sector that provides home at more reasonable prices with various perks and incentives. That's how to handle housing when you've got tons and tons of people and almost no land.
> So if I bought my house in 1955, I might pay $100/year in property tax
Ok it's fine to point out drawbacks of Prop 13, but making up stuff doesn't help.
Prop 13 baseline assessment used 1976 values, so buying in 1955 doesn't make any difference, it still started on 1976 valuation.
It goes up 2% every year, so for this scenario we're talking about a house that was worth well under 10K in 1976. The median house price in the US in 1976 was 48K (so surely higher than that in California).
Eh, the order of magnitude difference is pretty spot-on.
Housing prices are absurd, and their rate of increase massively outpaces the rate of increase for pretty much every other thing a person would purchase.
Cali also has prop 13 i.e. rent control on real estate taxes. So if I bought my house in 1955, I might pay $100/year in property tax, the guy who just bought a completely identical house next door this year might pay $15,000 a year in property tax. On basically the same house. How is that fair? kinda a boomer "I got mine" type mentality. Also part of the bay area real estate problem, in addition to zoning/byzantine planning, borken process - why would anyone want to move out?!? Moving out would mean +$15,000/year tax, every year. Just stay put.
Of note in Singapore there's not really the concept of "apartment building" business and it works fine (very dense NYC tier housing there). The reason why is the more "units" you own, taxes become progressively more brutal, an apartment building would be tax armageddon. So most rentals are a person who owns a few condo type units and rents them, few enough that taxes aren't bad. Most people aim for owning, and for owning there is a private sector but a public government sector that provides home at more reasonable prices with various perks and incentives. That's how to handle housing when you've got tons and tons of people and almost no land.