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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (82213)	5/27/2007 3:45:00 PM
From: 8bits	Respond to of 110194

Could protecting housing prices by big boost in impact fees raising costs significantly plus constraining new supply along with much lower RE taxes be the future in other bubble states? If they ever did this in nonbubbily Texas home prices there would go up easily 50% in a year.. I am not sure about Texas but you have similar conditions developing in Florida... rapid appreciation of housing prices (leading to higher taxes..) combined with a decline in the quality of life and environmental impact. (Prop 13 was not only a tax revolt but also had a no growth aspect to it..) Intentionally or unintentionally it's screw the new guys. A side effect of Prop 13 was for municipalities to push commercial construction (provides tax revenue without the necessary increase in expenses.. schools, police, firefighters..) over residential construction. Also with Florida since most people want to live within relatively easy driving distance of the beach (in Cal it's the coast, since weather near the coast is nicer..), I suspect you will be getting land constraints. en.wikipedia.org Similarly, Proposition 13 greatly benefited homeowners whose homes have appreciated in value since it was passed, particularly those (such as the elderly) whose incomes have not risen as fast as property values. In cities with many older residents, this has led to a severe shortage of affordable housing, since new developments must often be far above the state's median home price in order to provide enough tax revenue to pay for the services they require. Impact fees have offset this problem somewhat, but are limited by developers' ability to go "jurisdiction shopping" for localities with low impact fees.