4/22/25, p. B10 "This California law made housing too expensive. Here is how to change it" - The Bee says regulations and red tape are what make housing expensive. My reply:
Your editorial cites CEQA as what makes housing expensive in California, but it's completely misguided. What makes housing more expensive is prop 13, the limit on real estate taxes. It not only makes real estate a safe haven to park wealth, it encourages land speculation--the speculators can cheaply hold land off the market until it reaches peak price--making property ever more expensive. Houses will typically rise to the value banks will lend, and since they lend multiples of available discretionary income, the lower prop 13 tax also encourages higher prices since it makes more income available for mortgage payments.
So you are straining at a gnat while swallowing a camel. The influence of CEQA pales to insignificance compared to Prop 13.
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