Prop 13 has nothing to do with real estate price inflation.  If anything, shifting of property tax burdens from long-time homeowners to new homeowners would tend to suppress prices.  Shifting that burden evenly across the population would tend to cause more churn as long-time homeowners get pushed out, but would do nothing to increase aggregate housing or lower aggregate prices.<p>Although, you can get pretty far into the weeds trying to evaluate the effect of housing stability on political economy - NIMBYism would be expected to be stronger in longer-tenure populations, for instance.<p>Stability of tax policy is a fantastic thing for encouraging long-term investment.