Leave a Message

Thank you for your message. We will be in touch with you shortly.

Unintended Consequences: LA's Measure ULA Faces Backlash | A Report from TheRealDeal.Com

Advisory Tony Accardo November 28, 2023

In a recent revelation reported by Dana Bartholomew with TheRealDeal.com, Los Angeles City Councilwoman Nithya Raman has disclosed that Measure ULA, a property transfer tax, was deliberately marketed as a tax on mansions to gain voter support, despite its broader impact on commercial properties. The measure, aimed at generating funds for affordable housing, homeless services, and mental health care, raised transfer taxes for properties over $5 million. However, the actual outcomes have raised concerns.
 
 
Luxury home sales, particularly those of Hollywood stars and executives, plummeted after the law took effect in April, significantly impacting the city's real estate market. The promised revenue of $672 million for the first year fell drastically short, with only $100 million generated in the first six months. Critics, including real estate agents and business groups, argue that the tax burden is ultimately passed on to renters and shoppers, negatively affecting the residential and commercial real estate sectors.
 
 
Despite the backlash and the market's adverse reactions, some activists argue that Measure ULA was a necessary step to address long-standing issues. Supporters contend that voters wanted a solution to problems that had been neglected for years, even if the implemented policy had unintended consequences.
 
 
However, opponents criticize the lack of foresight in the tax's implementation, with luxury home sellers potentially holding onto their properties in anticipation of legal challenges or adjusting prices to stay below the $5 million cutoff. The debate surrounding Measure ULA serves as a cautionary tale about the complexities of implementing policies through ballot measures and the need for comprehensive planning to mitigate unintended consequences. As Chicago contemplates a similar measure, the experiences of Los Angeles offer valuable insights into the potential impacts on both the real estate market and the intended beneficiaries of such initiatives.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Real Estate

Key Questions to Ask During an Open House in Hermosa Beach

Essential Tips for Navigating Hermosa Beach Open Houses

Real Estate

Why 2025 Might Be the Right Time to Buy a Home, According to Compass CEO

Housing inventory is up, prices are softening, and mortgage rates are stabilizing. Compass CEO Robert Reffkin shares why 2025 may be the best time in years to buy a ho… Read more

Real Estate

Your Guide to Buying a Home in Manhattan Beach

Essential Tips for Navigating the Manhattan Beach Real Estate Market

Real Estate

Featured in Dwell: A Palos Verdes Masterpiece by Edward Carson Beall

An architecturally significant estate with ocean views, resort-style amenities, and timeless design earns national acclaim in Dwell magazine.

What’s New in the South Bay: Summer 2025 Restaurant Openings

Summer 2025 is heating up in the South Bay—not just with sunshine, but with a fresh wave of exciting new dining spots. From beachfront cafes to gourmet markets and san… Read more

Real Estate

The #1 Thing Sellers Need To Know About Their Asking Price | AREA

Pricing your home correctly is more important than ever in today's dynamic real estate market. An accurate asking price can attract serious buyers, reduce time on the … Read more

Beyond the Algorithm: How Real Strategy Delivered Real Results | 26846 Basswood Avenue Case Study

This charming Rancho Palos Verdes home was strategically listed at $1,749,000—a number that balanced market demand with seller goals. Just days later, it was under con… Read more

Spring Escapes: The Best Wildflower Hikes in SoCal this Spring

As spring unfolds in Southern California, the landscape awakens with vibrant wildflowers, offering a feast for the senses. While the anticipated superbloom may be subd… Read more

Sell Smarter: Compass Data Reveals the Advantage of Pre-Marketing Your Home

​In the dynamic world of real estate, the strategy of pre-marketing properties—introducing homes to select audiences before their official listing on Multiple Listing … Read more

Work With Us

Tony and his team set out to be not just the best possible realtors but also trusted resources. Their experience goes well beyond their years as South Bay's top-producing Realtors®.