National Real Estate Investor,
November 13, 2018-
Advocates for new rent control laws are still fighting—even after voters rejected California’s “Prop 10” ballot initiative that would have allowed tough new rent laws. “If you are an owner of apartments, rent control laws are a very, very scary thing,” says John Sebree, first vice president and director of Marcus & Millichap’s national multi housing group. Apartment rents continue to rise faster than incomes in most cities and towns across the United States. Legislators and activists are calling for new limits on how fast rents can rise in states including California, Illinois and Washington, among others.
In most parts of the country, state laws make it impossible for local governments to pass new rent control laws. Rent control is banned in 47 states, according to David Garcia, policy director at the Terner Center of Housing and Innovation at the University of California Berkeley. California’s Costa Hawkins Rental Housing Act, passed in 1995, imposed sharp limits on the ability of local governments to create new rent control laws, including places like San Francisco, which currently has existing laws that limit rent increases for many older apartments.