Economists And Housing Experts Agree That Rent Control Reduces California Housing Supply And Revenue

California Rental Housing Association Urges The Governor To Stand With Rental Property Providers To Protect Costa-Hawkins To Keep The Rental Housing Industry Viable.

SACRAMENTO, Calif. – The California Rental Housing Association (CalRHA) responds to the short-sighted request from Justice for Renters to Governor Newsom to support rent control. Each year California property owners see a steady increase in calls for more aggressive rent control. These proposed policies result in discouraging investors from constructing, rehabilitating and converting housing into rental residences and also encourages small rental property owners to take units off the market which ultimately negatively impacts California’s rental housing market.

“California’s budgets are declining, and a statewide rent control would further reduce funding for public services such as health care, education, public safety and transportation,” said Earle Vaughan, President, California Rental Association. “And, rent control harms disadvantaged groups and often does not provide relief for the tenants it is meant to help.”

Protecting the ability of rental housing providers to establish initial rental rates for a new tenant is critical for a viable rental housing industry in California. The current cohesive statewide housing policy provided by the Costa-Hawkins Rental Housing Act should be preserved.

CalRHA encourages Governor Newsom to not be swayed by groups promoting shortsighted policies that will actually do more harm than good.

“What we see today, is another miscategorization of rent control.  Decades of research by renowned economists and housing experts consistently show that rent control does not work,” added Vaughan, “And we need the Governor to look at the facts, not be swayed by gimmicks, and protect Costa-Hawkins.”

About the California Rental Housing Association
The California Rental Housing Association represents 24,000+ members totaling more than 675,000+ units, made up of small, medium, and large rental housing owners throughout the State of California. Our purpose is to advocate in the best interest of the rental housing industry and collectively address industry needs.
 

Media Contact: Julie Stephens, 323-301-6646, Julie@elevatepublicaffairs.com