> As a property owner, why increase taxes by using the land more productively with new buildings, when you can continue to profit just as much without that?
Is it really a bubble if the overvaluation is created by law? The only way to pop the bubble would be to change the laws. And with Prop 13 being untouchable politically, and homeowners have an iron grip over city councils to keep cities underzoned, there's little chance of the systematic problem being eliminated any time soon.
because the bubble will pop eventually.