California Has It Wrong

Back in November, Californians voted on a proposition to eliminate the current state wide rent control legislation that was enacted in 1995. California’s rent-control regime is governed by a state law called the Costa-Hawkins Rental Housing Act. It prevents cities and counties from imposing rent control on single-family homes or apartments built after 1995, among other prohibitions. The law also froze rent control rules in cities such as Los Angeles that had policies before Costa-Hawkins was implemented.

By repealing Costa Hawkins, it would leave the field wide open for individual cities to implement their own rent control rules. 

The defeat of the proposition by a vote of 60% in which voters rejected the initiative and landlords spent $100-million-plus in a campaign to sway public opinion. 

The state government is trying again with a new set of measures aimed at weakening the Costa Hawkins rules.

About 9.5 million renters — more than half of California’s tenant population — are burdened by high rents, spending at least 30% of their income on housing costs, according to a UC Berkeley Study.

The authors of the study are recommending rent control again, at the same time they acknowledge it will not solve the problem of inadequate supply.