Monday, August 15, 2016

Rent Control study: negative impact on community housing

With all the discussion on rent control and pros and cons bandied about, why don't we take a look at a study that explores the results of rent control. I know this isn't convenient for the pro- rent control faction but every once in awhile you need to see that pie in the sky visions of what isn't possible or desirable need to be put on the table.
Jim Wagner
Image result for Rent control neighborhood, Los Angeles, CA picture
Rent control: there goes the
building, and the neighborhood. 

The information below came from an Apartment Association study conducted by Beacon Economics in Los Angeles.  You can click on the link below and read the Executive Summary and the Conclusion.

This report makes the following findings:
-         Beacon Economics did not find strong evidence that rent control helps to reduce the number of low-income households spending 30% or more of their income on rent.
-          Rent control can have a negative impact on low-income households not living in rent-controlled units through higher growth in citywide median rents.
-          Rent control ordinances are associated with lower growth rates in the supply of rental housing and with higher rental price growth in the broader market.
-          Rents are too high because multi-family housing and the state’s housing stock have failed to expand commensurately with the ever-growing population. The solution to this affordability problem is to expand the apartment stock in these cities, not introduce price ceilings.

Other notable excerpts:
Finally, limiting how much landlords can increase rent may create a disincentive to properly maintain the property, since landlords will not be able to recover the cost of that investment through higher revenues. This can affect the quality of life for tenants, and affect the surrounding neighborhood by decreasing the value of adjacent properties.

Reference. Beacon Economics January, 2016 upload, pdf pages 21, "An Analysis of Rent Control ordinances in California."

Submitted by Jim Wagner

Note photograph from City Watch/Sasha Abramsky, 2/25/16, "Renting in Los Angeles: dislocation, dislocation, dislocation, dislocation, dislocation." 

Posted by Kathy Meeh


Anonymous said...

How many of those rent control advocates do you think will actually read this report? Yea, right. Doesn't fit into their mantra of evil landlords. Head in the sand mentality. Sad.

Anonymous said...

A study done for the Apartment Association? Is there any doubt it fits the anti-rent control mantra of landlords?

Anonymous said...

Who is more evil?

Out of Town developers?

Out of Town Landlords?

Anonymous said...

Renters should quit belly aching. If they saved their money when they were young, instead of spending it on booze and pot, they could have bought a house back when they were cheap.

Anonymous said...

10:43 anonymous
This is a phony post by a rent control advocate attempting to demonize landlords.
Grow up, get real and stop blocking construction of any and all affordable housing in Pacifica.

Anonymous said...


Your either a renter or landlord.

Hurry up and pay the rent, you owe me another late fee.

Anonymous said...

Pacifica remains a bass-awkward town because it has no housing that people who need a home can come and live in. No revenue, no development, no significance mostly asstitude that got it nowhere in the last 40 yrs.