Post by University of California, Berkeley

Is the California Dream… just a dream? New UC Berkeley research suggests that for many Californians, leaving the state is becoming a pathway to homeownership and greater financial stability. After seven years, people who move out of California are 48% more likely to own a home than those who stay. But this story didn't start with the pandemic. The report points to long-running policy choices that continue to shape who can buy a home, who can stay, and who gets priced out. One factor identified by researchers is Proposition 13, the 1978 measure that limited property tax increases. According to Evan White, co-executive director of the California Policy Lab: “White pointed to the economic stress imposed by Proposition 13, the 1978 measure that limited property tax increases. Because the law allows homes to be revalued — and property taxes to be raised — only after a home is sold, new homebuyers are in effect penalized.” The tradeoff extends beyond individual households. If more people leave California than move in, the state could face a smaller tax base to support schools, roads, public safety, and other public services, while also losing representation in Congress over time. What would it take to make the California Dream feel attainable again—for both newcomers and longtime residents? [Video description: A to-camera video of Evan White sitting in front of a gray backdrop. Supporting visuals of California and accompanying graphs appear alongside his voiceover.] #UCBerkeley #California

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