A rent control initiative will be on the November ballot in California. Beware its appealing name: "Affordable Housing Act". Below is a link to a very well done 8 page document that provides rent control facts and sources/links to studies and more information. You can dive as deep as you wish. Exceptional information source.The Act will repeal the current bipartisan Costa-Hawkins Rental Housing Act of 1995. If appealed, all local governments will be allowed to adopt rent control ordinances without limitations!So what's wrong with rent control? Many studies by Economic Academics have proven that rent control is a very bad idea! The list of unintended consequences is about a mile long!
- Impedes New Construction
- Reduces Property Tax Revenues
- Creates Substantial Administrative Costs on Government
- Reduces Consumer Mobility and Quality of Life
- Higher Income Households Benefit Most
- The Substantial Costs of Rent Control Fall Most Heavily on the Poor
- Unfairly Tax Rental Housing Providers and Other Real Estate Providers
Although the essential information is above, I encourage you open and read this PDF document which provides excellent fact-based explanations. It is a scan of a document I received at the North San Diego Business Chamber. I may replace with live hyperlinks so that you can click the resources on the doc.