California legislators passed a bill that limits rent increases across the state to 5% plus inflation on apartments built at least 15 years ago. Gov. Gavin Newsom is expected to sign the bill into law. The measure includes exemptions for owners who live with their tenants, and owners who live in one part of a duplex and rent out the other unit. Landlords will be allowed to raise rents to market rates when a tenant moves out.
The measure will have little impact on large cities such as Oakland and San Francisco, which already have rent restrictions, but it is expected to significantly affect places like the wealthy suburbs of the Bay Area. The law also includes eviction restrictions. Landlords will be prohibited from kicking out renters who follow the rules of their lease unless the owner is moving in, tearing down the residence, renovating it, or taking it off the rental market.
The California Association of Realtors and most of the state’s Republican lawmakers opposed the bill, saying it would decrease the value of rental properties and deter developers from building more housing. Democrats and renter advocacy groups said the measure is necessary to stem a serious homelessness crisis and help families anticipate rent increases.
Advertisement
Related Stories
Sales + Marketing Trends
Brand Loyalty and Why Builders Should Think Like a Hospitality Brand
Whether its offering that personal touch or incorporating experiences into amenity use, home builders have something to learn from the hospitality industry
Innovation
Florida Multifamily Housing Complex Built Using Lego Block–Like System
This patented mineral composite, fiber-reinforced building system stacks Lego-like blocks to create a building solution its creator says is both sustainable and resilient
Affordability
Possible Boost for Affordable Housing in New York City
The developer of New York's Freedom Plaza has added a major affordable housing piece to the project, hoping that will help push through other components of the development