To Rent Control or Not to Rent Control - That is the Question - Prop 98 Heats Up
From today's SFGate,
Proposition 98 was written as a restriction on eminent domain that would prohibit the government from taking property for the benefit of a private party. Opponents say it would do far more: define "private" and "take" in terms so broad as to effectively overturn the state's approach to managing development and affordability.
The clause attracting the most attention is one that would ban government-imposed limits on what landlords can charge tenants. The change wouldn't affect existing leases, but once renters move out, property owners in cities with rent control laws, such as Berkeley, Oakland and San Francisco, no longer would have to limit price increases on those units. [more...]
Differing views on measure to end rent control [SFGate]
How Rent Control Drives out Affordible Housing [CatoInstitute]
Labels: Prop 98, Rent Control, San Francisco Real Estate
posted by Meredith Martin @ 1:34 PM
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3 Comments:
If New York City's experience is any indication, rent control does not work out very well.
I'm of two minds about it. I lived in rent control in the city for 8 years before I bought a place - so I'm not unsympathetic to it.
Then again I have had several friends who make six figure incomes for years that keep their rent controlled apartment in San Francisco because it's a fabulous location has views.
Rent control in its current form is too broad a tool. If the city wants to help folks live here who can't afford it on their own, then the city should create a rent subsidy program. Not only does the current rent control program benefit lots and lots of people who don't need it, the burden falls entirely on the individual landlord which is especially onerous for the small "mom & pop" landlord who may only have one or two units to rent. If the city wants to subsidize rents, the burden should be bourne by everyone.
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