California's Prop 13 Benefits Older Generations, Punishes Younger

A new study from USC concludes that the benefits of California's Prop. 13, which froze property tax rates, are unequally distributed among generations of homebuyers.

1 minute read

September 28, 2009, 10:00 AM PDT

By Tim Halbur


"The Proposition's origins and cumulative effects over its 30 years are intertwined with California's soaring house prices. The boom of the late 1970s gave rise to the tax revolt because assessments in those years often rose 60% in a single two-year reassessment. However, the traumatic crash of 2008 calls new attention to our ingrained assumptions about upward price trends. Prop 13, as it is commonly known, was designed for a regime of rising home prices that has now ended. Its two main pillars were a fear of rising prices that drove property taxes to exorbitant levels and the promise that high taxes paid by new buyers would be reduced over time by inflation and made up for by higher taxes paid by other people when they bought at even higher prices in later years. Ever rising prices were the necessary key assumption."

Tuesday, September 8, 2009 in Urban Planning Research Blog

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Person in yellow safety suit and white helmet kneels to examine water samples outdoors on a lake shore.

USGS Water Science Centers Targeted for Closure

If their work is suspended, states could lose a valuable resource for monitoring, understanding, and managing water resources.

May 1, 2025 - Inside Climate News

New York City Subway Platform

New York State Budget Includes $68B MTA Capital Plan, Boosts Transit Security

The state’s FY26 budget includes increased investment in transit security, mental health services, and fare evasion enforcement.

8 seconds ago - Mass Transit

Concrete building wth Department of Housing and Urban Development sign

Local Governments Sue HUD Over Funding Cuts

A new lawsuit alleges that the Trump administration’s revised guidelines for housing and homelessness assistance funds will decimate key programs.

May 6 - The Mercury News

Inside of self-driving truck on road.

California Is Retooling its AV Guidelines

The California DMV is proposing a new framework for light- and heavy-duty self-driving trucks that would enhance reporting requirements and pave the way for autonomous commercial fleets.

May 6 - Smart Cities Dive

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Senior Manager Operations, Urban Planning

New York City School Construction Authority

Building Inspector

Village of Glen Ellyn

Manager of Model Development

Central Transportation Planning Staff/Boston Region MPO