L.A.’s Mansion Tax Cost City 9,000 New Homes as Builders Pulled Back, Study Finds

Pitched to voters as a tax on the wealthy to fund much-needed affordable housing, Los Angeles' controversial "mansion tax" has instead cost the city over 9,000 new housing units, 16,500 construction jobs, and $452 million in lost municipal revenue. That is the sobering conclusion reached by researchers at the nonpartisan global policy think tank RAND Corporation in a recent report assessing the impact of the real estate transfer tax, officially known as Measure ULA.Enacted in April 2023, the measure imposes a 4% tax on property sales of $5.4 million to $10.9 million, and a 5.5% tax on sales exceeding $10.9 million. These rates apply on top of Los Angeles' standard 0.45% base real estate transfer tax.Contrary to its moniker, the tax pertains not just to expensive mansions but to all real estate priced at over $5.4 million, including apartment complexes, office towers, retail spaces, mixed-use buildings, warehouses, and vacant land.The 89-page RAND study, titled "The Effects of the Measure ULA (United to House LA) Transfer Tax on Economic Development and Municipal Finances in Los Angeles," shows that ULA raised approximately $1.2 billion by early 2026 toward affordable housing develo...