I have the perception that many people in San Diego buy real estate without including the cost of property taxes in their budget.
I have that same perception. Taxes along with bubble prices are the reason that I’m not moving–yet
However, I don't think that Prop 13 lowers turnover that much since buyers think in terms of monthly payments and are willing to take on exotic loans. I'd be interested to see if Prop 13 in CA lowered turnover as compared to other states. I doubt it. If anything, California is more mobile than other states for reasons other than taxes.
I know that my much older cousin who just retired in NY is thinking about selling her house because of taxes. She’ll probably move to North Carolina where she can buy a much cheaper house.
I think that Prop 13 was unsuccessfully challenged in the past because it discriminates against newcomers.
As a long time homeowner, I'm happy about Prop 13. But I think it's unfair since I believe that everyone should be treated the same. Personally, I think that we should get rid of all the incentives to homeownership because I don't believe that they work — they simply cause prices to go higher. Homeownership should not be a measure of success (especially if everyone is in debt to their eyeballs). Quality of shelter for the general population is, in my view, a better measure of well-being.
