That is the same situation which was sold to the voters of California in 1979 for Prop 13 and now we have underfunded schools, fire departments, and police departments. Property values are now artificially inflated because long-time owners are underpaying property taxes (they are growth-capped) and recent purchasers are paying much more for identical properties. Additionally, Prop 13 is an effective real estate transaction friction which keeps inefficiency in the housing market.<p>I would hope the city would offer to partner with a shrinking small town to help relocate people who can no longer afford to live in the city to a town that is suffering from a high rental vacancy rate. A pensioner will only continue to be squeezed by living in a high-demand city as even rent-controlled units are allowed to raise their rents.