LA's luxury house sales plummet 70 PERCENT in the first year since its hated ... trends now
Luxury home sales in Los Angeles have been decimated by the so-called 'mansion tax' one year since it came into effect.
Launched April 1, 2023, the policy levied a four percent tax on all $5 million to 10 million property sales, while funds were programs for the homeless.
But one year later, the Measure ULA strategy has seen luxury house sales drop by 68 percent, while raising only 22 percent of its stated goal.
Some 366 single-family homes were sold in the 12 months before April 1, 2023, versus 166 sold in the year since, according to the Los Angeles Times.
Local real estate developer Hooman Ghaffari blasted the policy as 'a sham' that has 'yet to come close to meeting stated goals' while making new developments 'financially unworkable'.
One breathtaking mansion within a gated estate in the affluent LA suburb of Tarzana has dropped $2.9 million, from $17.9 million in July 2023 to its current price of $15 million according to listings
Another stunning sun-soaked property, located in the coveted neighborhood of Encino, was devalued by almost $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 levied metro area
LA's Housing Department has generated $215 million from the tax over the past year - a disappointing sum compared with the $900 million it was predicted to raise.
The city has defended the policy as something which will take time to gain traction, saying income from the tax snowballed toward the end of the first year.
On top of the four percent tax on properties over $5 million, for mega mansions that break the $10million threshold, homeowners lose 5.5 percent of their sale price if they decide to cash in on their estate.
A quick peruse of LA's current housing listings for properties in the 'mansion tax' danger zone - those listed at $5 million or more.
One breathtaking mansion within a gated estate in the affluent LA suburb of Tarzana has dropped $2.9 million, from $17.9 million in July 2023 to its current price of $15 million according to listings.
Despite coming complete with a private entrance, marble fire place, large heated pool, spa tub, outdoor pavilion, tennis court and wine cellar, its been on the market for 270 days.
Stunning drone footage of the 4.12-acre lot shows the pristine turret-roofed home is surrounded by pristine
