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Will rent control put an end to soaring California prices?

On Behalf of | Feb 1, 2021 | Firm News

As a landlord in California, you probably watched the past few years with bated breath. Government officials made several attempts to introduce rent control measures to make housing more affordable, but these propositions face continuous defeat.

The most recent defeat you may have noticed came in November of last year when Californians voted down Proposition 21. This ballot measure aimed to give local governments the right to dictate the ceilings for rent, with some exceptions.

ABC7 notes that this represents the second time in two years that voters rejected rent control measures. The last time occurred in 2018 and involved Proposition 10.

Costa-Hawkins Vs Propostion 21

The Costa-Hawkins Rental Housing Act of 1995 restricts local jurisdictions from placing rent control measures on units built after 1995. The most recent proposition had hoped to change this restriction to apply only to properties 15 years or older on a rolling basis. It also hoped to restrict how much you could raise the rent by when a tenant moves out.

Housing affordability crisis

Housing affordability remains a top concern all across the country, in both rental and ownership markets. This problem has compelled some people to move into rural areas. Some people have also decided to pursue alternative means of homeownership, such as RVing or living in stick-built tiny homes. These markets continue to grow but have done nothing to stem the demand for traditional homes.

California continues to face concerns related to homelessness and high costs of living. Because of this, another rent control proposition will likely resurface in the next few years.