Other factors impacting housing situations that are particularly Californian in nature are a result of a general scarcity of land in desirable locations. Undeveloped land costs are exceptionally higher, most notably within the Los Angeles and San Francisco areas. Kenny Slaught points to consistent delays in construction of new projects, which forces many owners to stay put and renovate instead, as Proposition 13, the 1978 amendment to the state’s constitution, has made relocating a prohibitive choice. While the law states that future property tax increases are capped at 2% based on 1975 assessments, one game-changing exception takes place when a sale is executed and a property is reassessed on current sale price. Yearly totals are ultimately framed by purchase figures which vary monthly, as demand in California shifts seasonally (with most homes purchased in June with a small increase at year’s end). Also affecting yearly totals are asking prices, interest rates, consumer confidence, negative equity status, quantity and quality of homebuyer jobs, saving rates, elements like major foreign investments, and disposable incomes.

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