LA’s luxury house sales plummet 70 PERCENT in the first year since its hated ‘mansion tax’ was brought in as millionaires chose to live outside the city in Beverly Hills, Malibu and Santa Monica instead
Luxury home sales in Los Angeles were decimated a year ago by the so-called “mansion tax.”
The policy, launched on April 1, 2023, imposed a four percent tax on all real estate sales from $5 million to 10 million, while the funds were programs for the homeless.
But a year later, the Measure ULA strategy has caused luxury home sales to fall 68 percent, compared to the stated target of only a 22 percent increase.
According to the report, approximately 366 single-family homes were sold in the 12 months before April 1, 2023, compared to 166 in the following year. Los Angeles Times.
Local real estate developer Hooman Ghaffari branded the policy as “a sham” that “doesn’t even come close to achieving the stated goals” while making new developments “financially unworkable.”
A stunning mansion on a gated estate in the affluent LA suburb of Tarzana has dropped by $2.9 million, from $17.9 million in July 2023 to its current price of $15 million, according to listings
Another beautiful sun-filled property, located in the coveted Encino neighborhood, was devalued by nearly $1 million, from $12.9 million in July 2023 to just over $11.9 million today
Pictured: Homes over $5 million are now more heavily clustered outside the taxed metro area
The LA Housing Department took in $215 million in taxes last year — a disappointing amount compared to the $900 million it was expected to bring in.
The city has defended the policy as something that will take time to gain traction, saying revenue from the tax snowballed by the end of the first year.
On top of the four percent tax on properties over $5 million, homeowners for mega-mansions that exceed the $10 million threshold will lose 5.5 percent of their sales price if they decide to cash out their estate.
A quick look at LA’s current housing supply for properties in the “mansion tax” danger zone – those listed at $5 million or more.
A stunning mansion on a gated estate in the affluent LA suburb of Tarzana has dropped by $2.9 million, from $17.9 million in July 2023 to its current price of $15 million, according to listings.
Despite being complete with a private entrance, marble fireplace, large heated swimming pool, spa pool, outdoor pavilion, tennis court and wine cellar, it has been on the market for 270 days.
Stunning drone footage of the 4.12-acre plot shows the pristine turret-roofed home surrounded by pristine lawns and towering conifers that protect privacy.
The wood-paneled interior features six gigantic bedrooms, seven bathrooms and a jetted bathtub.
Realtors for a five-bedroom beachfront home (pictured) in the Pacific Palisades have dropped the price by $605,000 from $7.6 million in May 2023 to $6.995 million today
The beautiful home features high ceilings, a large private pool and stunning views of the ocean and surrounding mountainside
A Mediterranean-style mansion in Los Feliz that was valued at $7.25 million in November 2023 also fell to $6.89 million in March 2024
Another beautiful sun-filled property, located in the coveted Encino neighborhood, was devalued by nearly $1 million, from $12.9 million in July 2023 to just over $11.9 million today.
The six-bedroom, 11-bathroom property has floor-to-ceiling windows and a luxurious open-plan interior, complete with surround-sound speakers, and is surrounded by towering oak trees.
Meanwhile, for a five-bedroom beachfront home in the Pacific Palisades, real estate agents have slashed the price by $605,000, from $7.6 million in May 2023 to $6.995 million today.
The beautiful home features high ceilings, a large private pool and stunning views of the ocean and surrounding mountainside.
A Mediterranean-style mansion in Los Feliz that was valued at $7.25 million in November 2023 also fell to $6.89 million in March 2024.
Greg Good, a senior policy and external affairs adviser for the office’s Housing Division, defended the “mansion tax,” saying profits would grow quickly.
He told the Los Angeles Times that money raised had increased month over month, from an average of $15 million per month in the first quarter, to about $25 million per month from July 2023 to February 2024.
Good said about $28 million had been spent on assistance for distressed tenants and landlords, and $56.8 million in loans to expedite the development of affordable housing.
The policy was expected to raise between $600 million and $1.1 billion annually to fund a range of affordable housing projects and support the city’s homeless community of 40,000.
In March, a city government report significantly lowered estimates to $672 million from July 2023 to June 2024
“None of that happens without ULA,” he told the Los Angeles Times.
When the plan was approved last year, Los Angeles Mayor Karen Bass praised it as the best way to fund “real solutions that will help people stay in their homes and create more affordable housing.”
DailyMail.com contacted the mayor’s office for comment on the progress a year later.
Just before the policy was introduced, LA’s wealthy homeowners tried to avoid the new real estate transfer tax by selling their homes en masse in March 2023.
Home prices were slashed and fearful sellers offered luxury cars and lucrative bonuses to anyone who could complete the purchase by the end of the month.
The policy also led to the rise of the $4.999 million home