While that sucks, that sort of self-correcting market pressure is in fact required for a healthy real estate market.<p>Yes, people would have been pushed out as prices increased.  But as areas gentrify, there is no guarantee that the farmers and tradespeople who lived there get to stay forever.  That&#x27;s how other markets work.<p>It sucks to those pushed out, but eventually taxes increase to the point where demand for the area diminishes.  Further, since you&#x27;d have increased liquidity without Prop 13, people could actually afford to move to other areas so there would be more inventory.  As it stands, that isn&#x27;t happening because people can&#x27;t afford to move, so the market is locked up.  If we didn&#x27;t have Prop 13, my gut says that the broader Peninsula would not be impacted to nearly the degree it is now (although perhaps SF would because it is so much smaller).<p>People being forced to sell because their areas taxes increase substantially is an unfortunate, but very necessary thing.