This is a disaster. Have we learned nothing at all? Rent control won't help anyone except those who already have a low rent place and it'll only help for the short term until they need to move. After 50 years of ridiculous regulations that prevent more housing from being added, we're still moving in the wrong direction. This is truely a sad day.
California Approves Statewide Rent Control
891–900 of 1001 posts
Re: California Approves Statewide Rent Control
#892I am a landlord in Oregon, but not California. The curious, although ultimately predictable, outcome of the new rent control measure in Oregon is that while I have historically had an arrangement with my property management to be restrained in annual rent increases, they are now advising a default annual increase of the maximum allowed (7 percent before inflation). This is because larger adjustments cannot be made if…
In Ontario the rent control is even worse. It’s set by the landlord tenant board at a number near inflation, this year it’s 2.2%, the last few it’s been 1.8%. Similarly, i tell my tenants that they should expect the minimum increase yearly as i cannot make up for any lost increases nor can i make larger increases if something about the economics of the house changes. The real issue here is the cost to provide housing…
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Re: California Approves Statewide Rent Control
#893Earlier quoted context omitted.
In Ontario the rent control is even worse. It’s set by the landlord tenant board at a number near inflation, this year it’s 2.2%, the last few it’s been 1.8%. Similarly, i tell my tenants that they should expect the minimum increase yearly as i cannot make up for any lost increases nor can i make larger increases if something about the economics of the house changes. The real issue here is the cost to provide housing…
This is really bad policy... Treating the symptom while making the root problem worse. The core issue is there is not enough good housing for everyone in California. The real solution is to greatly loosen building regulation and make getting permits much faster and easier statewide. Then entrepreneurs will double or triple the housing supply and drop the costs of renting or buying a home by 80%. You could see rents g…
Your on the right track but there's a ton of regulation we need to get rid of before we can truely increase the supply with new innovations in housing production.
Re: California Approves Statewide Rent Control
#894Earlier quoted context omitted.
Why do you think construction price, and not land price, is the limiting factor? I'm in a high-demand city in Canada. The house I'm in right now is worth about $70k. The land it sits on is worth $900k. Shipping containers aren't going to help with that.
It will if you stack them eight stories high. Don't know where you live, but I doubt it's more expensive land than San Francisco, where the average acre of land costs $3.2 million[1]. Taking that acre of land, save half the area for green-space and courtyard. Use half the footprint for shipping containers. Stack the containers 8 high. You now have 242 double-pod units. The amortized land cost per unit is $13,000. Ass…
Same ballpark ($2-3 million/acre) - and yeah, you're not wrong that if you can get approval for 250 units in an acre you can have reasonably priced housing. But the hard part in that equation is convincing whoever controls zoning to allow for it - once you do that, whether it's shipping containers or traditional construction you can have affordable housing.
Re: California Approves Statewide Rent Control
#895Earlier quoted context omitted.
Rent control in SF really is that bad. Rent increase limits are 60% of CPI, so it can’t even match inflation. If your costs go up (utilities) or you want to do capital improvements, good luck getting the rent board to approve a pass through. Want to prevent other people than the tenant from moving into a 1 bedroom? Tough, can’t say no to that, it just has to be under 3 people. Want to move into your own house? Sure,…
A lot of what you're saying in here is blatantly incorrect or misleading. Water is frequently covered in utilities, but other utilities generally are not. Leases are very specific on the number of people in a unit for rent controlled apartments and is one the few things a tenant can be evicted for. The board frequently approves pass throughs. Increases tend to be higher than inflation. If you lease out your house and…
You need to do more research.
The rent increase law is 60% of CPI. Look it up.
SF introduced a new law a couple years ago that additional people can live in a unit even if they are not on the lease. They only instituted caps on how many. Google search it.
Plenty of apartments have not only water, but also heating included in the rent. If that goes up drastically, the rent board will likely tell the landlord “tough”.
And I’m not against buying out tenants. I am against them having to pay $100,000 or more.
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Sources:
This amount is based on 60% of the increase in the Consumer Price Index for All Urban Consumers in the Bay Area, which was 4.4% as posted in November 2018 by the Bureau of Labor Statistics.[1]
Legislation that went into effect November 9, 2015 allows tenants covered under rent control to add occupants, if reasonable, despite restrictions in the rental agreement.
[1]https://sfrb.org/sites/default/files/Document/Form/571%20All... [2]https://www.sftu.org/roommates/
Re: California Approves Statewide Rent Control
#896Earlier quoted context omitted.
You are absolutely correct: rent control (1) increases upward pressure, and (2) decreases rental supplies (and therefore drives up the price of rent) , and (3) benefits high-income earners when not coupled with income limits. (1) Since rent control laws put limits on increases (and not decreases) every landlord understands that he/she should test the upper boundary at all times to avoid renting severly below market r…
In Montreal we've had universal rent control all my life, and it actually works quite well. The rents are comparatively low. We have a decent tech scene, but it's still an affordable, left-leaning city, where even struggling artists can scrape by if they want to dedicate themselves to artistic work. I'm sure some people would argue that apartments in Montreal are less well-maintained as a result of universal rent con…
the reason rent control works in that case is because the difference between the rent control the amount dictated by the free market is very close. In that case, efffectively, the rent control doesn't really do much at all and hence isn't interfering with the pricing signals and incentives to build. In CA, the rent controlled prices are currently so far lower than the current cost of building it makes it pretty much impossible to build.
Re: California Approves Statewide Rent Control
#897I am a landlord in Oregon, but not California. The curious, although ultimately predictable, outcome of the new rent control measure in Oregon is that while I have historically had an arrangement with my property management to be restrained in annual rent increases, they are now advising a default annual increase of the maximum allowed (7 percent before inflation). This is because larger adjustments cannot be made if…
In Ontario the rent control is even worse. It’s set by the landlord tenant board at a number near inflation, this year it’s 2.2%, the last few it’s been 1.8%. Similarly, i tell my tenants that they should expect the minimum increase yearly as i cannot make up for any lost increases nor can i make larger increases if something about the economics of the house changes. The real issue here is the cost to provide housing…
I got out of renting out a place I owned in CA a few years ago for this very reason. The company that bought it eventually turned it into a parking lot. I’m just glad it’s not my problem anymore.
Re: California Approves Statewide Rent Control
#898Regarding SF house prices in particular:
San Francisco prices go up => only tech bros can afford rent
San Francisco rent prices get capped => tech bros still need place to live and win rental application lotto
Artists can't afford rent, but want to live in city full of tech bros and glass condos?
It doesn't make a lot of sense to me why you'd want to stay in SF if you're genuinely an artist. Is it a romanticization of the city's past rather than the reality of the present - a stark line between rich and poor with tent cities all around? An elementary school system not friendly to families making community ties (random geographic assignment)?
SF doesn't have a thriving liberal arts school - the art academy is a profit pit meant to create student debt. Aren't places like Berkeley, Pacifica, and Santa Cruz much more attractive locations? Even farther south like San Luis Obispo?
Lastly I am just going to ask this more fundamental question: should anyone be allowed to live anywhere they want, and is that the right people are striving for? Or is it simply they should be able to stay in the place they are once they're able to `get int`?
Re: California Approves Statewide Rent Control
#899Earlier quoted context omitted.
They could already do that. Nothing was stopping them from forming an oligopoly or landlords association/guild or whatever you want to call it and raising rent in lockstep by 7% each year. The entire point of the 7% cap is to stop that from happening above 7%, because certain hotzones experience that already, not because of a formal agreement, but because the demand outstrips supply by that much and supply can't (or…
> Nothing was stopping them from forming an oligopoly or landlords association/guild or whatever you want to call it and raising rent in lockstep by 7% each year Well, “Nothing” is an unusual way of referring to the Sherman Anti-Trust Act.
With the current administration and Supreme Court, it's a very apt way of referring to the Sherman Anti-Trust Act.
Re: California Approves Statewide Rent Control
#900Earlier quoted context omitted.
A lot of what you're saying in here is blatantly incorrect or misleading. Water is frequently covered in utilities, but other utilities generally are not. Leases are very specific on the number of people in a unit for rent controlled apartments and is one the few things a tenant can be evicted for. The board frequently approves pass throughs. Increases tend to be higher than inflation. If you lease out your house and…
You need to do more research. The rent increase law is 60% of CPI. Look it up. SF introduced a new law a couple years ago that additional people can live in a unit even if they are not on the lease. They only instituted caps on how many. Google search it. Plenty of apartments have not only water, but also heating included in the rent. If that goes up drastically, the rent board will likely tell the landlord “tough”.…
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