AB 1482 will go down as being California’s first real foray into rent control and even though everyone will admit that the state has a problem with high rents, few people really are agreeing on what to do about.
What Are the Critics Saying About Rent Control in California?
As with any new piece of legislation, the critics of California’s rent control bill are lining up to thrash it in the press, and rightly so because AB 1482 won’t do much to solve the problem of lack of supply of available rental properties in California.
California already boasts the highest housing costs in the country, and even liberals have come around to acknowledging that not enough homes are built to meet demand. The state has added about half as many housing units as needed to accommodate population growth, and more than half of Californians spend 30% of their income on rent.
Blame a thousand regulatory burdens. Local governments limit what housing developers can build and where. They layer on permitting fees, and then there are the state’s high labor costs and expensive green-energy mandates and restrictions that opponents can exploit to block projects for years.
Last year state regulators mandated solar panels on new homes. Cities are increasingly prohibiting natural gas hookups as they try to block fossil fuels. The San Luis Obispo City Council voted last week to charge developers a $6,000 fee for every new housing unit that isn’t all-electric.
What Comes Next for California?
There’s little doubt that Governor Newsom won’t hesitate to sign AB 1482 into law very soon and the big question is what comes next?
Housing groups are eager to have even more stringent rent control measures in the State of California so we could see continued sweeping changes in the rental market that may affect it for years to come.
Contact 36 North Property Management
To learn more about rent control in California, or to speak with us about our property management services, contact us today by calling (831) 484-4604 or connect with us online.