The conservative case for denser cities

[AggregateDemand]

California's problem is unique because they have a constitutional amendment that caps the rate of property tax. Creative tax policy is necessary to encourage efficient use of land because land is finite, rivalrous and excludable.

Property over-valuation is a difficult problem for government to solve. They can't aggressively champion lower-cost housing because they will create millions of insolvent home-owners and they will decrease the wealth of the urban area. Obviously, bankers are going to hammer away on city councils and counties that undermine the value of their collateral.

The market must do its thing. People need to leave California in droves, until property values decline and wages rise. Don't beg the government for help. They can't do anything.