> Prices are high because there is demand. Zoning keeps supply scarce.
Which is why the price falls from a million dollars to $750k for the same amount of square footage. But now you have five times as much square footage on the same piece of land, which is more than the decrease in price per square foot. And still would be even if the price per unit fell to $400k.
> On top of that in CA, if you were to hold your million dollar home, your property taxes are locked in even while the asset value increases exponentially.
Which is just a facet of existing local tax law. You could get to the same place by just having very low property taxes in general.
Which is why the price falls from a million dollars to $750k for the same amount of square footage. But now you have five times as much square footage on the same piece of land, which is more than the decrease in price per square foot. And still would be even if the price per unit fell to $400k.
> On top of that in CA, if you were to hold your million dollar home, your property taxes are locked in even while the asset value increases exponentially.
Which is just a facet of existing local tax law. You could get to the same place by just having very low property taxes in general.