Hacker News Reader

The real estate market (and well, most real markets) cannot be completely explained by simple supply/demand calculations covered in a high school economics course. Nor can they be entirely explained by a highly-trained economist. There are many factors at play that complicate matters.

View on HN

Like what?

For example, Prop 13 in CA caps property tax increases on primary residences, which keeps people in their homes longer than they would otherwise stay, which in turn reduces the for sale inventory.

Another example is Trump's Tax Act, which capped "SALT" deductions (State and Local/Property Taxes). This impacts housing prices relative to rents because you can't deduct the full amount of your property tax in high value states like California.

These are two examples...

Reply on news.ycombinator.com