Since 1995, the Costa Hawkins Rental Housing Act has been a state law that’s kept cities in California from establishing their own forms of rent control, but times have changed.
In most cities across California, rents have been climbing consistently for years. Renter advocacy groups have eyed Costa Hawkins as the “culprit” that has been stopping them from slowing down rent growth and providing a break to renters but is repealing Costa Hawkins (Proposition 10) the solution to solving high rents in California?
UC Berkeley Economist Supports Keeping Costa Hawkins
Since the movement to repeal Costa Hawkins has gained momentum this year there have been plenty of supporters and opponents who have voiced their opinions on this issue both online and in the local media.
One person who supports keeping Costa Hawkins is Kenneth T. Rosen, chairman of UC Berkley’s Fisher Center and chairman of the Rosen Consulting Group.
In his recent paper “The Case for preserving Costa-Hawkins”, Mr. Rosen explains that repealing Costa Hawkins would decrease property values by at least 15 percent over time and dramatically reduce the supply of available rentals that more than 2 million households depend on in California.
Rosen’s paper reflects the views of many key leaders in the rental housing space who also see a Costa Hawkins repeal as lowering property values in California and slowing down construction of rental housing while increasing rents statewide.
California Needs More Rental Housing, Not Rent Control
California needs more rental housing to be available to renters at every price level.
Unfortunately, if Proposition 10 is approved, and Costa Hawkins is repealed, we could see fewer rental housing being constructed statewide. This will only make it harder for renters who depend on affordable housing to live here.
November 6th, 2018 is now just a few weeks away and the fate of Costa Hawkins will be determined at the voting booth.
What will the Bay Area rental market look like after the November vote? Bookmark our blog today as we will keep you posted on all of the latest rental markets news affecting you regardless if you own or rent properties in the area.
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