P I N N A C L E P U L S E
Rent Control Would Add to Our Housing Crisis Published Sunday, March 25, 2018, in the San Diego Business Journal
Much of California, including the San Diego region, is facing a housing crisis that legislators, real estate professionals and builders are nowhere near close to sufficiently addressing. Further compounding this challenge is the renter’s perception that rent control would solve the affordability issue. This could not be further from the truth. Over the past two decades, new housing construction in San Diego has failed to keep pace with population growth,
By Christian Davis, Regional Vice President – California
Rent Control Repealing the Costa Hawkins Rental Housing Act would allow local governments to implement rent control policies on all housing types regardless of other restrictions put in place by the state. Simply putting a stop to rising rents would not help San Diego’s housing crisis. The housing crisis is a much more complex issue — one driven primarily by the lack of construction of new housing. Putting an arbitrary limit on rental costs does nothing to address the root cause: California needs more housing to support new jobs and a growing population. On the surface, rent control might seem like a logical solution: Prices are too high so the government forces landlords to keep them below a certain threshold. This policy has proven its flaws. One need only look to cities such as San Francisco and NewYork, which despite rent control, have the highest housing costs in the nation. With less income to re-invest in maintenance, the quality of available rental stock decreases, worsening living conditions and creating blight.
leading to a backlog as high as 200,000 units. After years of underbuilding and increases in new jobs and population, the demand for housing has continued to rise. As a result, San Diego’s rent prices have increased an average of 2 percent every six months since 2000. According to the San Diego Housing Commission, as many as 50 percent of San Diegans cannot find affordable rental housing. Of the solutions that are being offered, some may do more harm than good. The rental housing industry is being threatened by a statewide ballot measure to repeal the Costa-Hawkins Rental Housing Act. You may have never heard of this law, but repealing it would have dramatic implications for our housing market and state economy. A voter approved measure repealing Costa-Hawkins would permanently scare off developers from producing much- needed housing, it would have a direct impact on those individuals who purchased rental condos and houses to enjoy the cash flow benefits during their retirement years, and it would negatively impact retirement funds.
Residents at ONE CLUB Gulf Shores gathered for a National Championship College Football party.
Congratulations to the ParcWoodland team in Conroe, Texas for capturing 18 solid leases in one week.
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