Reply to The median Boomer has a housing cost of $612. That includes taxes and insurance.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't understand this. Are boomers grandfathered in to low taxes and insurance or something? How on earth could they pay so much lower than the rest of us with similar houses?
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[b]When it comes to property taxes, many states (eg, California) and local jurisdictions (eg, DC and thousands of other cities & counties) cap property taxes from appreciating for long time home owners. So if you own your home for a long time, you will pay only a fraction in property taxes of what newer home owners will pay. This is especially true in areas that have seen rapid price appreciation in recent years. 
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It’s massively market-distorting and keeps older residents in their big homes because they don’t want to pay more in taxes. California tried to alleviate this by allowing older residents to sell their home and apply the original discounted property tax rate to a new property….its had mixed results. But even in California, you have houses in Malibu that are worth $10m but they pay the original property tax on the $300K value when they purchased the property in 1980. So maybe they pay $10K per year in property taxes while their next door neighbor pays $100K/year.

There’s variations of these tax distortions all over the US. Now apply this to vacation homes and investment properties, plus zoning restrictions….it puts younger buyers at a massive disadvantage. [/quote]

This is insane! So the rest of us are subsidizing boomers?![/quote]

It is not just Boomers. My friend bought a home in Malibu CA and closed on it Jan 2020. Home prices in Malibu have had a massive increase since Jan 2020 and he locked in much lower taxes for life than people buying in 2024 as his is based off Jan 2020 prices.  [/quote]

If your friend can afford Maiibu, he can afford to pay his taxes.[/quote]
He doesn’t have to. Good luck changing CA law. [/quote]

Malibu was no bargain in Jan 2020. Your friend is still paying far more than his neighbors who bough in 1985.[/quote]

He paid 2 million for a small home in Malibu. It is currently worth on redfin 3.5 million. A 2024 buyer of his exact house if he sold it would pay 75% more property tax. He has three kids so pretty sure home will be passed on to one. They are 15, 12 and 5. My bets on 5 year old getting it!  [/quote]

And his neighbor probably paid $500,000 for that house. That's how it works in CA. On the same street everyone pays wildly different taxes which is why once you're on there is no incentive to move.[/quote]

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