Housing Marking Trends in Santa Cruz
Paul Locatelli notes that Santa Cruz is seeing a shift in its housing landscape. Regular brick-and-mortar buildings are being replaced by five to six story high-rises, which are now covering much of downtown. These new developments provide young renters with brand-new one or two bedroom units, typically costing around $4,000 per month. The buildings offer a sense of safety, as many are locked, which reassures parents.
Long-Term Property Ownership
Locatelli explains that the majority of property owners in the area are long-time residents, often referred to as the old timers, who may own around 50 percent of the homes. In the West Side of Santa Cruz, many families bought homes back in the 1960s and 1970s for prices as low as $16,000 or $17,000. These owners have held onto their properties for decades.
Impact of Prop 19
Previously, Prop 13 allowed these long-term owners to benefit from low tax basis. However, Locatelli points out that Prop 19 has changed the rules. Under the new legislation, inherited properties no longer automatically retain their original tax basis, which has resulted in higher taxes for many families. As a result, some long-time property owners may no longer be able to afford holding onto their homes and are starting to sell. Locatelli has observed this trend increasingly in recent times.
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