Bay Area Prop 13 Savings Remain Strong for Homeowners

California's Proposition 13 limits property tax increases to 2% annually based on purchase price, benefiting long-term homeowners by reducing tax bills compared to market values. From 2017 to 2025, the gap between assessed and market home values shrank in most Bay Area counties, meaning assessed values grew faster. This trend reflects market cycles, with reassessments occurring upon home sales. Prop 13 helps protect some homeowners from tax spikes but may favor wealthier owners and constrain local revenue.