Give working families a break

US housing market is on fire. Median house prices have jumped 20% in the last year. Particularly, the Bay Area is an expensive place to live. The real estate has increased consistently above the CPI and the wage growth in this area. This makes home affordability in the Silicon Valley a daunting task. It not only affects the professionals working in the high tech industry, but also makes it very hard for the service professionals to live in this area. This vicious cycle has not been addressed properly at all by the local governments. $10,000 cap on the state and local tax deduction (SALT) in their federal taxes is not helping either. Average home price in the Bay area has risen to such levels that paying property tax has become prohibitive. California State definitely does not need the extra windfall money. Prop 13 needs to be modified, such that tax is no more than 0.5% of market property value.  It will open up many more homes for sale and encourage construction of new homes.