I would add to this that from a home owner’s (or landlords) point of view, there are a number of factors discouraging mobility (or selling):
1) You would lose any tax subsidy due to Prop 13.
2) Prices have risen so much that many people can’t afford anything near as nice as what they have, much less something better.
3) Rents haven risen just like house prices and so lots of rentals are cash positive.
4) When prices are going up so fast, why would you sell? This leads to a psychology of being more inclined to hold onto your current house.
Overall, it seems to me that the current situation has lead to a whole lot of “House Hording”.
