LA mansion tax blocked 9,100 homes, killed 16,650 jobs and cost $452M: report

Key Points:

• Los Angeles' "mansion tax," known as United to House LA (ULA), has blocked the construction of 9,100 homes, eliminated 16,650 full-time construction jobs, and resulted in $452 million in lost revenue, according to a new report by RAND Corporation.
• The tax, which applies a 4% to 5.5% fee on property sales above $5.4 million, has discouraged sales and development, especially in high-value and multi-family real estate markets, reducing expected revenue to about $1.2 billion instead of the projected $2.7 billion over three years.
• Despite raising funds intended for affordable housing, only a small portion of the revenue has been spent, with critics arguing the tax has slowed housing production and hurt the real estate market more than it has helped affordability.
• Councilwoman Nithya Raman, a key proponent of the tax, has since proposed reforms to exempt new developments from the tax for 15 years, but her efforts have faced opposition and failed to make the ballot.
• The tax's impact has sparked debate among economists and developers, with some attributing slowed development to broader economic factors, while others highlight the tax's role in deterring projects and reducing property sales above the threshold.