Mansion tax could be 'hardest hit since 2007,' Josh Altman warns

Byron Lazine and Nicole White are two agents in Connecticut who give us their thoughts on the week’s news every Friday in “The Real Word,” a weekly video column on Inman. This week 

This week, Lazine and White discuss Josh Altman’s view of California’s proposed mansion tax, the tug-of-war between millennials and boomers, and the pain Zillow’s CEO sees on the horizon.

Topic No. 1: Josh Altman on California’s proposed mansion tax

Million Dollar Listing LA’s Josh Altman said in a recent interview that proposed taxes on California homes priced $5 million and up could create the ‘hardest hit’ on the California housing market since the meltdown of 2007-2008. The so-called mansion tax is slated to be used to fund affordable housing in the state.

White said that while the California market is different from the Connecticut market where she works, she finds the proposed tax “mind-blowing” and wonders what exactly will be done with the money generated from this program. Will it go directly to helping with homelessness in the state, for instance? What will the programs look like and will they actually work, Lazine wondered.

Topic No. 2: The tug-of-war between millennials and boomers

In a recent Inman article, experts explained how rising mortgage rates, inflation and economic uncertainty have put millennials and baby boomers into competition for similar properties, especially those in walkable downtown areas. Despite common stereotypes, multiple surveys show that both millennials and Gen-Z demographic cohorts want to purchase homes.

While millennials are having to spend money on dating and avocado toast, said Lazine, boomers control 1/7th of the world’s wealth. They can come in and pay cash for homes so interest rates aren’t hurting them the way they are affecting younger homebuyers.

Topic No. 3: Zillow’s CEO says ‘the real pain is probably coming’

This week, Zillow’s CEO Rich Barton told GeekWire that “the real pain is probably coming” and the real estate industry is in for some rocky economic times. In a wide-ranging interview, Barton said that being prepared for what’s ahead, including more pain, is essential.

Agents right now shouldn’t be saying typical things, Lazine said. Messaging should be relevant and business planning needs to be designed to meet the challenges ahead. Going “back to the basics” now is about work ethic, but your playbook has to be different.