Article from Reason by Christian Britschgi.
On Wednesday, California lawmakers approved AB 1482, which caps rent increases at 5 percent per year plus inflation, and prevents landlords from evicting tenants without citing a government-approved reason.
Wednesday’s vote makes California the latest state to pass a rent control bill. Oregon passed a statewide cap on rents in February. In June, the New York legislature passed a bill strengthening existing rent controls in New York City while giving other cities in the state the ability to pass their own rent regulations.
Economists and other policy experts have long criticized rent control for reducing the supply and quality of rental housing in the long-run. California’s rent control bill is no exception says Michael Hendrix, state and local policy director at the Manhattan Institute.
“What we are going to get is a reason for landlords to convert apartments to condos,” says Hendrix. “The net result of that is potentially more units being taken off the market, and long-term this housing crisis getting worse, not better.”
Read the entire article at Reason.
Image Credit: By Henri Sivonen from Helsinki, Finland (flickr: California State Capitol) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
wpDiscuz
What is a government t approved reason?
Whatever lie they can get away with…
California State Government continues their attacks on property owners rights to evict people that aren’t paying their rent. This is already difficult enough under current laws without making it near impossible. This doesn’t solve anything but makes the problem worse.
Liberal Democrat government in Ca. only has 2 solutions for any problem. Tax it or regulate it or both. So Ca. has a housing shortage what do they do? They make life more difficult for the landlord. I have not heard of them easing building restrictions or eliminating fees to help reduce the price of housing. They just take the existing supply and make it more difficult for the owner. Great solution Ca. The shortage will just increase unless you come up with reasons why builders should build and why landlord should rent to people. Boneheads.
Mexifornia …What a bunch of azz clowns…..I agree with their Gov, raise the taxes on the idiots that put them in Office. They wanted DemonRatic Law? Well Mexifornians got what they deserve. And when they start fleeing to your neighborhood, tell them go back & clean their own back yard.
Boy when this all comes together there is going to be a huge reckoning, and I hope that we can prevent the Feds from bailing there a**s out. Let the stupid SOBing Hollywood morons do it. It will be their homes that are millions of dollars less than their mortgage/debt. It will be fun to watch, and it can’t be to far down the road before they reap what they have sown.
Only problem is the medieval diseases coming back from homeless all over. That will get everyone. So it should be addressed and California made to pay for it.
How will that address the homeless needs? 5% of nothing is still nothing
Bye bye californicate. And good riddance to you.
Send all the illegal people back across the border and guess what, housing problem solved.