Read an article recently (I will post it if I can find it again) that shows most of the outflow if from poorer, less educated Californians to less expensive states, while the inflow is from highly educated wanting an opportunity in the various sectors of the economy (stem, finance, film industry). Consequently, the real estate craze isn't about to end in California. I just wished those who can't afford living there would pick up and leave rather than force gov to subsidize their living (rent control, low cost housing projects, tents, whatever). I'm a proponent of supply and demand with gov intervention only to ensure the mechanism is frictionless. If king for a day, I would cut all general assistance programs on one end and prevent property hoarding by owners on the other, making it costly to hold empty properties.
I think that.s true but there is a very negative impact from the notorious Proposition 13 that disincentivizes real estate turnover since properties in California keep rising much greater than the 2% cap on real estate taxes imposed by Proposition 13. It is also the reason other taxes in California are so high. Sales taxes in Alameda County are 10.5% and I'm sure the marginal tax rate will only keep rising as if 13% wasn't enough.
Prop 13 is a market distortion law that shouldn't be. And I say that having benefited a great deal from Prop 13.