California is one of the most popular states in the whole of the United States of America. It is the home to Hollywood and some of the most developed metropolitan cities in the country. California guarantees you a wonderful lifestyle and happening environment all year-round. If you are trying to find a new real estate property, then you must have seen that property valuations in California are on the rise. But, why is this so? Well, there are several factors that come into play for this particular rise.
Let’s check them out in this blog and find out more about California property tax assessment.
Not Enough Housing – one of the reasons housing costs are so high in San Francisco and other California cities is because there are not enough homes to offer them to the people. The result is a huge difference between supply and demand when it comes to housing in California. According to the state’s housing ministry, the state must build additional 180,000 new homes each year to meet this massive demand. However, the state of California has only managed to build half of it in the previous 10 years. While many factors contribute to the lack of housing demand, one of the main constraints is the lack of arable land. Although California is a huge state – the third largest in the United States of America – most of its acres are barren hills and mountains in a rugged desert. That is why developers cannot just lay down a plan & make buildings.
Housing in Urban Areas – not only is there a lack of proper housing system in California but there is a huge demand from the people to live in the urban areas situated in this state. It goes without saying that California is one of the best states in this country. It has all that you need to live a healthy and prosperous lifestyle for a long period of time. The regions in and around California are also developing at a rapid rate. Hence, people have shown great interest in moving to California and start enjoying the benefits of a state that has huge potential. Some of the areas in California have seen an outstanding 2000% interest from the people.
Proposition 13 – Proposition 13 was passed in 1978. The purpose of Proposition 13 was to reduce the amount of property tax that the government could collect. While it was designed to prevent Californians from paying sky-high property tax, it has had a lot of other negative consequences. This has forced the local governments to use other sources for revenue. That is why the government would rather build a retail store on vacant land instead of a set of apartments where people can live.
Other Facilities – California has a lot of other things to offer to the people who are living in this state. This changes the whole scenario. We can find out that most Californian real estate is 2.5 times higher than the median national home. A major reason for this is because California benefits from different sectors. It has a huge entertainment industry, a booming travel & tourism industry and a fantastic IT sector as well. So, the people have more and more opportunities to take part in and lead the life they always wanted to in their careers.
If you are planning to get a brand new home or real estate in California, then you should surely check out these points to find out why they are so expensive here. Also carry out California property tax assessment and find the amount of tax that you’ll have to pay to the government.