The lock-in incentive is counterproductive but the main cause is still zoning.
Prop 13 makes it so long-term owners don't want to sell because moving triggers a huge tax hike even at the same property value, and the most idiotic thing about it is that you also get the tax hike if you build anything new on the land. It would actually have been a major pro-housing rule if adding new units kept the low taxes.
But that still doesn't reduce turnover to zero, and with prices as high as they are there, that would mean developers snapping up any property that comes onto the market and turning it into multiple units that are each worth the original price. Unless prevented from doing so by zoning, which is the actual problem and the same one causing it in other states.
The main contribution of Prop 13 isn't a direct effect, it's that it makes residents more inclined to support the restrictive zoning rules that actually cause the problem.
Prop 13 makes it so long-term owners don't want to sell because moving triggers a huge tax hike even at the same property value, and the most idiotic thing about it is that you also get the tax hike if you build anything new on the land. It would actually have been a major pro-housing rule if adding new units kept the low taxes.
But that still doesn't reduce turnover to zero, and with prices as high as they are there, that would mean developers snapping up any property that comes onto the market and turning it into multiple units that are each worth the original price. Unless prevented from doing so by zoning, which is the actual problem and the same one causing it in other states.
The main contribution of Prop 13 isn't a direct effect, it's that it makes residents more inclined to support the restrictive zoning rules that actually cause the problem.