The tony California counties where home ownership is a ‘caste system’: ‘We don’t have a housing market’

[Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.]

New property data reveals a bombshell shift in California’s housing market: Homeownership is quickly evolving into a “caste system” where family wealth matters more than your paycheck.

A staggering 16% of all home transfers in 2025 were inheritances — a rate nearly triple what it was at the turn of the millennium and double the national average, the San Francisco Chronicle reported.

More than one in four homes that changed hands in Monterey, Santa Cruz or Napa last year weren’t “sold” — they were simply handed down to heirs who, in many cases, are the only ones left who can afford to live there.

Monterey County led the state with 28% of all home transfers being inherited, while Santa Cruz, Napa and Santa Barbara followed closely, each tied at a 27% inheritance rate, according to data from the Wall Street Journal.

Major metropolitan hubs also saw high levels of inherited ownership, with San Francisco recording a 22% rate and Los Angeles at 20%.

Conversely, Yuba County recorded the lowest inheritance rate in California, at 8%, which aligns with the current national average.

This trend of property inheritance has less to do with love or even the actual process of inheriting, and more with the dire condition of the California housing market, according to Matt Delventhal, an economist at Cotality.

When homeowners sell, they usually pay taxes on the increase in the value of their property. However, if they pass the home on after death, the tax bill disappears, making it easier to keep the property for future generations, even if it’s no longer needed.

For more information see Zain Khan “The tony California counties where home ownership is a ‘caste system’: ‘We don’t have a housing market’” The New York Post, March 23, 2026.