Hereās what a lot of people donāt understand about real estate in California, and in Los Angeles in particular:
Because of Prop 13, which froze property tax rates on both commercial and residential properties back in 1978, many homeowners in places like Pacific Palisades, Santa Monica, and Altadena are either still living in homes they bought in the 1970s-1980s, or they inherited that home from a relative, which allowed them to keep that low property tax rate.
Itās not all or even mostly millionaires and movie stars living in those places. Itās a lot of middle-class retirees who got lucky 40 years ago and never moved because they wouldnāt be able to buy a comparable or smaller property anyway.
So while movie star homes are getting all of the headlines, there are thousands more elderly and middle-class people in those same areas who are losing everything to these fires.
And, yeah, you can be mad that a 1978 amendment to Californiaās state constitution let this situation of people sitting on houses for 40 years happen, but it doesnāt mean itās all or even mostly rich people this is happening to.
Iām saying this as someone whoās a renter in Los Angeles county and will likely always be a renter, because the distortions of the property market created by Prop 13 mean we canāt afford anything. š¤·š¼āāļø



















