How California Is Redefining Rent Control | WSJ

California's sweeping new rent control law is meant to help alleviate pressures surrounding the affordable housing crisis. The result could mean laws like this start popping up all over the country.
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[@KleWdSide]

In other words... just don't move to SF or NYC unless you're wealthy.

[@chen5237]

Mister Sarajevo Even the wealthy are leaving

[@connor6589]

Mister Sarajevo Why moved to San Francisco All it is homeless drug addicts

[@drew8642]

Mister Sarajevo Don’t move into any major city at this point.

[@jaketyler7088]

@@drew8642 Plenty of major cities are inexpensive such as Las Vegas, Memphis, San Antonio, Toledo, Phoenix, Orlando but many cities are on a do-not-live-in list such as NYC, LA, DC, San Diego, Seattle, Boston, Chicago, or San Fran (which I'm guessing are the major cities you're referring to).

[@kapo2012fb]

Far from wealthy.. but living good in nyc my guy

[@1stGruhn]

what about the laws that prohibit apartment blocks? The main reason rents is going up is that demand is outstripping supply. The laws that restrict renting via zoning and that restrict high rises are the main reason the housing supply is limited. This is nothing more than government trying to 'fix' a problem they created by exerting themselves more into the market they should just get out of.

[@DARK2665]

Californian Democrats block any changes in zoning laws. Current ones benefit them, the same way rent control benefit only people who already live there, not the people who will want to move in in the future

[@Bittzen]

Yeah, i think the title for the video is very fitting. The girl be like "if cali could do it and it works out, it can lead to other states doing it" god no

[@LTEAndroid]

This makes sense thanks !

[@NZH00]

But people don't want LA to turn into New York

[@1stGruhn]

@@NZH00 most of the high rises in NY aren't apartments. There are two main reasons LA and the like don't want high rises: more traffic and a decreased real estate cost. The first is more understandable, infrastructure costs is a real issue and traffic is already famously bad. The second is nothing but cronyism.

[@airgunningyup]

5% ?? well that assumes everyone in the city is getting 5% annual raises , and most arent .. Most companies give 2-3% raises meaning people are still getting poorer by the day

[@Gitn2it]

Another problem driving high rents are local property taxes and fees on homeowners and businesses. They are extremely high in some cities and these costs are being passed along to consumers. Some homeowners in the Chicago area are paying $15k and $25k per year. I imagine businesses pay even more.

[@j5545]

That's why everyone's going homeless

[@paxundpeace9970]

This avoid atleast some evictions and rent increase beyond 10% which isn't unusual in San Francisco and other cities in Los Angeles

[@RK-ve4xp]

The problem with everyone getting a raise is it will create inflation.

[@S1N2D3S]

That doesn’t even include inflation with the money printing the Fed is doing. Meaning rent goes up by 5% and so does the cost of buying groceries and other Living expenses not just Housing

[@StrumVogel]

Cost of living and inflation keeps going up, while wages stagnated. That is how the middle class diminishes.

[@alexxela9502]

I would like Americans to know about affordable housing in Russia and in General what life looks like in Russia, therefore, we can understand that in Russia everything is not so bad as the opponents of Russia declare with the help of propaganda! If it will be interesting to know something about Russia, here is more information I live in the provincial city of Perm: kzbin.info/www/bejne/gJOqmXilhdyrZtk today in the labor market, the salary we have is this: perm.hh.ru and perm.zarplata.ru/vacancy/yandex ($300 part-time or light work, and up to $ 2,000 full-time, or business trips) the prices of products in stores: semya.ru/sale/vremya-nizkikh-tsen/ another retailer: edadeal.ru/perm/offers The rate of $ 1=64 rubles, but because of the parity of the purchasing power of the ruble, $ 100 in Russia (for of small taxes, low cost of energy resources, Russia's own raw materials, etc.) is not the same as $ 100 in the United States (for example, the defense budget of Russia is $ 50 billion, and the Pentagon budget is $ 730 billion, but in total about $ 120-150 billion is spent on the purchase of equipment and maintenance of the Russian army in rubles and how much the Pentagon spends on the same amount of procurement and maintenance of the army, so it is wrong to consider the ruble to the dollar in this case)! So is built and evolves Russia-schools, hospitals, are opening production (information is updated every 24 hours): sdelanounas.ru/blogs/ Secondary education for free, higher education free, if you type a certain evaluation under the end schools (such students majority), and if paid, then have us will from 800 until 1,200$ in year. Medicine is free under the insurance policy (the policy can be obtained once and for life, even if you currently do not work anywhere, the policy is still always valid!), but there are also paid clinics, for example vision correction from 300$ Prices for eye surgery services: perm.3z.ru/price/ dentistry-to put an implant (I recently did myself) the implant itself with the operation costs from 300$ + from 300$ the crown itself on it. The prices for dental: prodoctorov.ru/perm/uslugi/stomatologiya/ Every year, hospitals are built all over the country. In just one year 2019 many hospitals were built across Russia: sdelanounas.ru/blogs/129131/ The price of cars in our city: www.avito.ru/perm/avtomobili/inomarki?radius=200 the price of houses: ​www.avito.ru/perm/doma_dachi_kottedzhi/prodam/kirpich?cd=1 apartments: www.avito.ru/perm/kvartiry/prodam?f=578_70b0.549_5697-5698-5699 (Rent a simple apartment 180-250$: www.avito.ru/perm/kvartiry/sdam?pmax=16000&pmin=12000&f=550_5703-5704 more than 400$: www.avito.ru/perm/kvartiry/sdam?pmin=25000&f=550_5705-5706 ), For information here are our Russian girls, can anyone want to get acquainted and start communicating the popular Russian network "Vkontakte": vk.com/album-64279904_186139394 and vk.com/albums-64279904 there are many registered Europeans and Americans. So that not everything is as bad as they say about Russia in the Western media! Taxes, as one of the lowest in Europe, for example for their real estate (7 hectares of land with buildings), I pay $ 1,700 a year, and for example for car (Volkswagen Touareg 245 HP) $ 220 a year, and insurance on the car (given my experience) is $ 170 a year. Mortgage loan for real estate from 7% per annum for up to 30 years (at the government level, recently considered the question that the banks of Russia will plan a significant reduction in the mortgage rate over the next three years), you can take a consumer loan of up to 100 thousand $ for up to 5 years and build your own house of brick and concrete, and not from plywood and insulation, as in the United States for $300 thousand! You can buy a ready-made business, here are the options in our city: www.avito.ru/perm/gotoviy_biznes Here is how the famous American MMA fighter tells about Russia Jeff Monson who moved to Russia some years ago described (how was he received in Russia) and last year received the Russian passport - (interview in English: kzbin.info/www/bejne/eXScXqKlZdRmkK8 ) On two countries lives American boxer Roy Jones, too, received Russian passport (he summer 2019 opened world championship on Boxing in city of Yekaterinburg - 250 miles from my town: kzbin.info/www/bejne/pnrHpIKug9CFaas ): kzbin.info/www/bejne/paq3c4etbLiEl5o American the actor Steven Seagal so same received Russian passport: kzbin.info/www/bejne/mXrQd5l_epejZ5I Here is the KZbin Channel of American Justas Walker who lives in Russia for more than 20 years and speaks Russian without an accent. A few years ago, he bought 100 hectares of land in the Altai mountains (250 acres in American) and is engaged in farming and cheese production: ​kzbin.info/www/bejne/lYbcqneXpdusesU Here is another American Tim Kirby who has been living in Russia for many years and is engaged in journalism, also speaks Russian well: ​kzbin.info?search_query=тим+кирби And here is an American who moved to Russia, opened his hairdresser and does not know Russian at all: kzbin.info/www/bejne/qJLCmnuXi9F6Zrc and kzbin.info/www/bejne/mnWUfqKJqMZ2qdk

[@gcdegcde11]

Wages have increased 13% since the 1980s while total compensation has increased 45%. The middle class is shrinking because everyone is getting wealthier. (Data from US Census)

[@BTrain-is8ch]

@Jesus Christ I wonder about that... Have housing prices really changed that much when you account for how far interest rates have fallen?

[@machinebp23]

Whether we see it or not, government intervention and the expansion of gov has made everyone poorer

[@emuriddle9364]

@Jesus Christ I agree. A lot of us are alone, stuck in unemployment/minimum wage, and some health problems. And yet, we're supposed to just "stop complaining?" Those who are privileged wouldn't understand. One of my former colleagues only cleared $350/month in his paycheck. Unless you have supportive, non-dysfunctional friends and family (Lol), you can't live on that.

[@RedsHitpostMedia]

As a Californian its not working and the middleclass is leaving congrats

[@chasemcallister5055]

Haha 5% plus inflation. So 7%. This is going to work great...

[@Dweller415]

Chase McAllister Exactly.

[@jntj3007]

Yep. It's truly nonsensical.

[@saulg195]

Well if that's the case they WILL do it now. They have a incentive so they have to keep up. This will be bad

[@cwaddle]

Landlord: Thank you America

[@mainnevent515]

Is this annually?

[@Axel-vt8no]

"If California can do it, and it actually works out.." "and if it actually works out.." BOLD ASSUMPTION THERE GIRLY

[@karlstrauss2330]

Axel Black my thoughts exactly 🤣🤣

[@ruzzelladrian907]

More laws isn't the solution. Building more housing to supply the demand lowers cost of rent.

[@jaketyler7088]

Sounds like the free market at its best. Commifornia should look at zoning deregulation first, then let the free market play out. No one is forcing these tenants to live in the country's worst state.

[@c87kim]

You obviously didn’t pay attention during the housing bubble pop Lol

[@jaketyler7088]

@@c87kim The housing crisis wasn't caused by building houses to match demand, rather by lenders issuing subprime mortgages to unqualified borrowers. You are correct though that more laws/regulation would have stopped these NINJA loans from happening in the first place.

[@NZH00]

Where are you going to build them though? LA is already extremely sprawling and you can't build new houses without forcing people to drive 2 hours to work

[@jaketyler7088]

@@NZH00 If no more room to build then people will move elsewhere if they can't afford to live in LA. No one is forcing tenants to live in LA or drive two hours to work. When rent prices go up, people move away, and the free market will provide as it has for quite some time.

[@nanisonfire1897]

Uhhhh California is completely unaffordable when it comes to rent

[@itz.ant07]

Capitalism

[@dylanthornsberry8778]

@@itz.ant07 Housing is one of the most regulated markets though. Zoning laws play a big part.

[@ibradeybunch]

@@itz.ant07 You mean government intervention

[@Koushi82]

why most millennials and gen z choose to live the van life

[@stayswervin554]

California is where rich people live like nyc it’s where most of the big businesses are apple, entertainment like record labels, movies, and tv productions.

[@katrinasavage7105]

My landlord raised rent by 300 in a year . we have been in the same place for 14 years. He fixes nothing nor has he painted . We have the original carpet from before we moved in .

[@indiald3373]

Katrina savage: Blessings for 2020 giving you relief.

[@Lilgamergrlie]

At least it’s not San Jose! My lease ended and our landlord raised the rent $1700. We didn’t even have working heat 😂 Good thing we were all graduating seniors but still insane for the next tenant. I hope you are able to get your landlord to make repairs! r/legaladvice on reddit is good if you need done people to point you at city codes or sources!

[@dkillerjoy]

You should have signed a lease.

[@atl3630]

Move?

[@sor3999]

And people say those poor landlords and their ever burdensome maintenance costs. What maintenance?

[@halflife352011]

Wow they act like they're proud of that 5% cap every year.

[@ashtoni8683]

These laws are pretty ineffective

[@quentinkarn7547]

CA voted against Rent Control, yet our governor is forcing it down our throats. Economists are nearly unified in agreement that rent control does not work. This is simply a tactic of buying votes. Rent control increases market rents above what they would be without it. Hence why developers love it, since it brings up the value of new buildings not subject to it (for 15 years). What we need to do is build more housing.

[@p.mcdrippln2340]

Yup law of supply an demand . Because government already makes building cost so much and if rent control is passed than the supply is low (no competition) and demand will still be high meaning they can continue to charge high prices.

[@mariocoronel8445]

If californians never evict democrats...

[@tecpaocelotl]

My rent has been going up 5-10% each year.

[@evaristegalois8600]

Tecpaocelotl Castillo if I were you I will compare the cost of taking a loan at 2.8% to be paid in 30 years vs the price of rent

[@saulbravo3485]

Bro. Are you still teaching náhuatl ?

[@tedarcher9120]

@@evaristegalois8600 true. Fixed rate mortgages are state subsidised, and rent isn't

[@tecpaocelotl]

@@evaristegalois8600 in theory it would work, but it's usually about $3,000 per month. I can get something cheaper if I'm willing to drive about 2 hours one way to work and 2 hours back and that's not counting the traffic.

[@tecpaocelotl]

@@saulbravo3485 I haven't done Nahuatl classes in a while, but I do have a Nahuatl group on Facebook. facebook.com/groups/nawahtlatolli

[@MattCommins]

If landlords can't raise rents then more of them will begin Airbnbing their properties.

[@rogerrussell9544]

Their policies never actually help the people they pretend to target.

[@Akidnameddroo1]

This is a huge problem in tourist areas like lake tahoe.

[@psulionz87]

The landlords can already rent their properties out to AirBNB, however, it always doesn't mean to bring in more $ - trust me, landlord here

[@dssub3119]

Many cities are cracking down on the short-term rental market now.

[@dssub3119]

@@1313aves No, cities regulate private property. Most cities prohibit you from building a 500 foot tall wall surrounding your property, or running a gambling ring out of your basement, or renting your home without adequate heat and water, or turning your basement into a rental without a certain ceiling height, ventilation, or flood protection. The list of things you can't do with your private property is pretty long actually.

[@thomasferrara3218]

I’m interested to see how this will play out on the state level. It should stay like that, state by state decision. A federal law capping rent increase should never come

[@AdamSmith-gs2dv]

I can already tell you: it's not going to work. Price controls NEVER work

[@danielcarroll3358]

@@AdamSmith-gs2dv This is not classic price control. 5% on top of inflation yields an *inflation* *adjusted* real increase of 165% after 20 years. Its purpose is to control flagrant gouging. This is why it doesn't apply to more than 80% of rentals in hot markets.

[@razzlfraz]

The law was created to ban the practice of landlords offering a low rent, then landlords taking advantage and cranking up the rent often 20%+ and hope the tenant stays. This law restricts that sort of behavior, but only mildly. Instead of it happening in one year, it happens in three years. imho 3% + inflation would have been fair. A 7% yearly increase almost defeats the point.

[@alvojnikovic2171]

I’m in Atlanta and it’s beginning to become unaffordable here too. Wages stay the same, rent going up

[@rockwithyou2006]

If you stay the same, your wages will stay the same too.

[@oneTOU3]

Just the way that guy was talking.

[@GG1783]

Tou Yang you 5 years old bro ?

[@oneTOU3]

@@GG1783 No, but I felt like it after hearing this guy!

[@rickc5566]

This is allready law in Vancouver, british columbia but if your tenant leaves your alowed to do renovations and jack up the rent again. Moral of the story is theres allways a way around the game and the rich will continue to play the game . Coffin apartments (like Hong kong) coming to a city near you.

[@alexanderh.999]

Disillusioned comments. HK doesn't have land to grow whereas Canada has plenty of space to build and grow hence no fear of small living areas

[@jiaxuanwan8105]

@@alexanderh.999 hk has no spare lands ？ Go figure it out. Say thanks to capitalism and free market

[@alexanderh.999]

wan Your point is?? Learn to write ok

[@jiaxuanwan8105]

@@alexanderh.999 you didn't even go to figure it out so just believe in your false mindset

[@jiaxuanwan8105]

@@1queijocas oh yeah you genius .. Wait wait wait wait did you just tell me that I didn't know what I was talking about ？？wow wow wow. Ok. A small fraction of what you said did make sense which is the new construction does be blocked by sb. But is it the hk government？you think the government really has a say on that ？ Come on capitalism there dude, especially a place with enormous wealth gap, those property developers would let new communities appear ？you are not informed

[@Peichen01]

Unless you set salary increase at 5% minimum a year, how will this actual help when salary isn’t increasing at 5%?

[@rockwithyou2006]

salaries are not increasing probably because you are not growing. The onus is on you to try to get more skills and get a better job or ask for a raise. You need to keep looking around. Don't end up staying at one place for 20 years.

[@FunnieApple]

@@rockwithyou2006 you keep replying to everyone who mentions wages not increasing like you know what they make lol your statement to everyone still doesn't change what this guy and many others have said about stagnant wages

[@rockwithyou2006]

@@FunnieApple your salary is what you exactly deserve. u can always ask for more or move jobs.

[@FunnieApple]

@@rockwithyou2006 no you can't dude. Some people are disadvantaged in various ways, and most employers don't want to pay their workers. Or are you seriously going to deny those things because your personal experience is that you've pulled yourself from your own boot straps and worked hard? "I'm not lucky or privileged, I just work more harder than you!" Is a trite and naive opinion. If you honestly believe that employers play no part in increasing wages than you're a fool.

[@SumbaSlice]

I wrote my bachelor thesis about rent control in Berlin. It was introduced by Hitler in 1936 but lasted several decades even after WW2 ended and was hardly abolished due to public resistance. I found out that rent control made more houses uninhabitable than the bombing in WW2.

[@tehepicduck101]

Source?

[@HMcQ7891]

@@tehepicduck101 HiS bAcHeLoR tHeSiS.

[@DavidJGillCA]

5% + inflation rate/ PER YEAR....every year? That's still gouging residents.

[@Lexman00]

It's fair. If you go lower than that, then you aren't being fair to the landlords too. These cities are expensive to live in anyway, if it's not rent putting a hole through your wallet, it will be something else, like high taxes. The better answer is to just move somewhere else, stop wanting to absolutely live in an expensive city just because you think it's a "beautiful and fun" place to live in. We have to adapt and seek new places.

[@Hoi-art]

@@Lexman00 I honestly hate this mindset. You bring no solutions to the table. This will happen statewide and it will get to the point were a heavy majority of the people will become homeless.

[@kingbrend222]

@@Hoi-art Rent increase is in direct relation to overhead costs for landlords. As the value of a home increases for example so does the cost of maintaining that home (tax increase, insurance, maintenance). As a landlord I lose money every year I don't increase rent. I have properties where I lose $500 or more per month fully rented. I have to increase rent or sale that property to not lose money every month. Of course there are bad landlords out there but it's not all of them.

[@kevinkent6351]

No it's not. It depends entirely on the balance of supply and demand in the area. 8% rent increases in some areas could be so low that it causes shortages.

[@Hoi-art]

@@kingbrend222 I understand that but you can't make money when the minimum wage refuses to go up, It's physically impossible to profit off of the poor and systematically keep them poor. The solution is to up the wage at a MAXIMUM wage to keep up cost so the individual wins, not lose.

[@NTifft]

Yes!! Let’s make this happen in Minneapolis, MN!

[@psulionz87]

And this is why... " I LIVE IN A VAN .... DOWN BY THE RIVER "

[@Koushi82]

XD nice lots of millennials are planning on that. van life for life > rent for life

[@psulionz87]

@@Koushi82 ... making a reference to a 90s SNL skit, but okay

[@TheCenturion9]

Rent is "suppose" to be regulated by the consumer price index, but nobody follows that. They just jack it up every time the lease is up...

[@savagecub]

It’s seems an impossibility that any tenant could keep pace with any rent increase greater than the cost of living increases.

[@108nighthawk]

So they leave and move somewhere more affordable and someone who can afford the rent takes their place. Life goes on.

[@savagecub]

James Russell Very few jobs have salaries that increase greater than the cost of living on an annual basis year over year. Eventually you would price yourself out of renters.

[@108nighthawk]

@@savagecub Eventually, parhaps, but clearly not yet if people still keep renting. And even if the landlords did reach that point where there were no more buyers all they would need to do is adjust slightly.

[@rockwithyou2006]

@@savagecub if your rent has become unaffordable, it means people living around you have started making more than you. Its really that simple. Landlords cannot charge arbitrary rents, they also need renters. They don't enjoy finding a new tenant. One month of vacant house can cost 2300$ to the land lord in a place like bay area.

[@Koushi82]

@@108nighthawk also quit their job as it doesn't pay enough for rent. then we get Detriot and life moves on until businesses pay enough for rent and housing costs.

[@carlodelafuente8807]

Riverside is in Southern California, not next to Sacramento. lol

[@mountaindew3201]

Yeah I noticed. They also mentioned how LA is more expensive than SF. That ain’t true cause I lived in LA first and then SF. SF was way more expensive than LA

[@Jen1112111]

The US Census reported that NY lost 76,000 people. This is the 4th year in a row that this has occurred. Meanwhile, rent is still rising. Theyre building like 15 new buildings all across the Bronx yet no one is moving in. They also refuse to lower the price to rent. I cant wait to see how this plays out

[@saulg195]

They will do 5% raise every year now or else they will lose money. This will be bad in the long run. They need to do by fair market share or have housing zone limits.

[@thehedgehog37]

Nothing like fixing a rental shortage with laws to increase rental shortages.

[@zacharyhenderson2902]

As a landlord, I don't support the California law, BUT, overall it's not that bad. It just means tenants won't see any major improvements in their buildings while they live there and you may see fewer perpetual rent contracts.

[@TheTerribleShaman]

My rent in Orlando, FL has gone up about 10% a year for the past three years now. Sucks because when you stay somewhere it doesn’t get refreshed or repaired like it would if you moved out, the quality of life has decreased steadily and rent just keeps going up.

[@Lil_Mikey01]

We live in modern America, if you’re not earning a six figure salary or are a multimillionaire/billionaire, you might as well be on food stamps.

[@TigerAskari_]

Then dont live in a big city, problem solved

[@KennyakaTI]

I don't make 6 figures and am able to save money and have no debt. Truth is most Americans live above their means and prefer to shop instead of save

[@davidmoore5004]

@@TigerAskari_ that's where all the jobs are I lived in small town Ohio not very many jobs are available because they are taken up by baby boomers and generation x if your any younger they will make you work 2nd shifts you can not choose and they will only hire you as a temporary worker there is no future for millenials in the workforce that's why most of us are moving to bigger cities and using jobs as assets to become entrepreneurs.

[@davidmoore5004]

@@KennyakaTI saving takes time especially when most companies pay their employees biweekly to fit their budget cost you literally have to have multiple streams of income in order to move up in life or you can just live comfortably with budgeting on what you can afford.

[@TigerAskari_]

@@KennyakaTI what kind of work do you do? I work in behavior analysis so i have the liberty to work almost anywhere

[@crashweaverda]

So are they going to cap property taxes for these rentals? Plus insurance costs? If not the rental pool will shrink.

[@MissBunny850]

crashweaverda another idiot mad About taxes he thinks he pays and no one else does and doesn’t even realize they benefit no one it’s government

[@jaketyler7088]

It will certainly be interesting to see if apartment landlords will be able to pay their own bills.

[@jesseyang8172]

California property is already capped at 1% of assessed value and 2% yearly increase. The 5% + inflation cap is actually very generous to the landlords en.wikipedia.org/wiki/1978_California_Proposition_13?wprov=sfti1

[@razzlfraz]

It's been like that in CA for a long time now. Property tax caps have given the average middle upper class and upper class some of the lowest taxes in the country and it's hurt our roads and schools because of it.

[@Cahluvca]

@@razzlfraz Its it on the 2020 ballot to repeal?

[@m3gal0z3r]

in SF, the allowable rent increase is a lot lower than 5%. It goes anywhere from 0.5% to 2.5% (changes annually)

[@kennithlibby]

Wow when we raise the minimum wage so high everything else goes up? Like tax? And goods? WHO WOULD HAVE GUESSED

[@tellingfoxtales]

Except California's taxation model is entirely unsustainable and California's utopian vision will fall apart in 10-30 years.

[@MrApontjos]

1. Don't live in Cali 2. When you move out don't vote for the same policies that made you leave

[@aaronscarpa7469]

Joey A. Yes!! California is a virus of humans

[@DOPEdwarf]

"policies that made you leave" financial success? Housing costs are cheap in places that are poorer. This is true in literally every single nation on earth

[@dawaj3715]

5% a year is still too much. If wages continue to remain stagnant and the cost of everything goes up every year there becomes a breaking point where people just have to put on yellow vests and occupy the streets.

[@baileyhampton7369]

Dawa J wages surpassed inflation for the first time in decades this year? Wages are growing, however housing and utilities are rising quicker. Thus, the reason for this video. May be small, but an important distinction.

[@giannisaxon4080]

This is not working and we still have homeless people and rent is too high.2700 for a two bedroom is crazy !

[@fahimzahir9587]

The rents are high, we don’t need a 5% increase cap, we need a decrease on the rent total. We need a wage that keeps above inflation or on par and match our wage to current year.

[@alexfrank5331]

Artificial minimum wage is not needed if government stops price gauging of rent all together. Price of rent is like price of tuition. The more money you have, they higher they'll hike the price. Increasing minimum wage won't solve anything if the price of everything is allowed to rise.

[@user-hc9qv9yb9m]

@@alexfrank5331 Then they need to control land prices

[@acctsys]

Commie

[@fahimzahir9587]

blightmoon Your comment shall be taken for the state

[@phillipotey9736]

We just need minimum wage to keep up with inflation. This constant debate of "when should we raise wages" kills more than housing prices.

[@nam5do]

No idiot ... raising minimum wages kills small businesses and job opportunities...

[@phillipotey9736]

@@nam5do Right now we lower the minimum wage every year by inflation. Business that doesn't break 5% net profits is a dead buisiness that burdens my tax dollars. No one wants to work for free, lowering minimum wage lowers GDP of a nation, and lowers the bar for your pay as a citizen.

[@ndo5366]

@@phillipotey9736 check out how the $15 minimum wage is destroying small business in Seattle and New York City.

[@phillipotey9736]

@@ndo5366 It depends on what you think small businesses should be. Should the owners be a happy middle class mom and pop who barely scrape by paying low wages; in this competitive market. Or a buisiness savvy owner who is aggressively trying to grow a business and change the world. I do agree many restaurants and common dream businesses are closing, but the ones who want to compete are doing fine. Unfortunately if you're not up to compete you're not a capitalist. I would like to hear your thoughts.

[@Wraithsdom]

Won’t work at this point, it will just devalue our money more than it already is; we will have the same as we’ve had before. Now statewide minimum wage hikes for states that have extremely high living cost could see Benefit. Most jobs pay 10+ in our Midwest states which is a liveable wage if budgeted correctly.

[@trevordeboer7325]

I live in Ontario, Canada. Our rental increases are capped at inflation, but can be set at whatever for the unit when someone moves out.

[@jascrandom9855]

The problem is the insane Zoning laws in the US that prevent to supply of housing from matching the demand. Especially Height restrictions and Parking Requirements.

[@muhammadraufurrahman9300]

opportunity for Airbnb .

[@deathlarsen7502]

Wrong, and you need to return the the middle east where you belong

[@Pcarnevaaa]

Don’t they prohibit Airbnb in sf now?

[@irannetwork7467]

Rent control just incentives landlords to raise rents every year now in order to keep up with growth. The solution is too allow for higher density developement.

[@gopdogg]

Man, that Urban Institute guy is a such an up-talker.

[@Sjalabais]

5% + inflation, supposed to "curb the worst excesses"...and rent hikes. But such a high cap will make landlords stretch to that number. No wage increase will keep up with that.

[@JH-kk2it]

Good start. But not exactly helpful to all those struggling currently. It’s a tough sell to all the people getting evicted, struggling, and living on the streets to tell them “oh don’t worry MOST it will go up is 5%”.

[@naphtal]

Why not reduce taxes? Because California gov't wants even more power.

[@naphtal]

@@mmbyron Trust me, gov't power is the root cause of ALL of California's problems.

[@keirfarnum6811]

Naphtali Research Proposition 13; part of the conservative tax revolt that limited the amount of property taxes that could be collected.

[@naphtal]

@@keirfarnum6811 Will do

[@razzlfraz]

CA has some of the lowest house taxes in the country. How much lower than 1% can you go? If anything it's the low taxes that have increased the house prices, which have in turn increased rent prices.

[@jonathanjames471]

Why not cost control on everything else ? Cost of cars ...cost of food ...cost of drugs ...cost of gas .etc etc ..

[@Mariofan2479]

CALIFORNIA NEEDS MORE HOUSING, not rent control. Rent wouldn’t be extremely high if there were an ample amount of places to rent

[@geraltofrivian516]

Here is a solution that nobody is talking about. Don’t allow out of country investors to buy properties in a city that they will never occupy. Case in point Vancouver, Canada, rents having increased tenfold over the past 10 years because all these rich Chinese people come in and buy up all the housing stock just to park their money overseas in a country they never live in. Also, cut regulations to make it cheaper to build houses! Or incentivize different types of housing like 3-D printed houses, tiny homes, fast fabricated homes. Also, get rid of the not in my backyard laws that prevent developers from going into neighborhoods and building multi families to drive prices down. Those are the people that have been driving up housing costs because they don’t want to live next to poor people.

[@GolfVidz]

The audio is so bad. Who got this job? Y’all hiring?

[@timothywells3908]

Imma be honest I thought i was the only one it sounds like Frye tones and knives in my ear

[@sarahakhtar3726]

I thought it was just fine...

[@sylviamitbrodt1562]

We have a rent control cap in British Columbia, Canada of 2.5 % per year. There is no additional amount allowed for inflation. The vacancy rate is still very low.

[@rockwithyou2006]

economic growth in CA is far more than BC. Cannot compare. The rate at which people are moving to the bay area given the job opportunities

[@ericandrade1962]

I am a landlord in Ontario Canada and we have a maximum rent increase of 2.5% Per year while a tenant is living in the unit Oh man California is looking very attractive

[@jocaingles8464]

Rent regulation increases inflation in something called 'inertial inflation'. Because the increase is limited, the assumption is that price has to increase. Typcally either the economy is booming or busting. If it's booming you have higher inflation, if its busting, you have lower inflation. The problem with inertial inflation is during the bust you maintaing high inflation. This causes a long recession because the economy cannot stabilize. Think 2009, but milder only with a longer duration. It doesnt sound as bad, but its actually worst.

[@BattlefeildTroll]

30%? Are you crazy? That number only works if you have a two income household. Any single person with a decent career (making around 50k a year) will be spending about 50% of their income for a house or apartment.

[@razzlfraz]

For a long time in our country's history it was the 1/4th rule, then it turned into the 1/3rd or 33% rule. It's very important to know the 1/3rd rule or you will not be able to retire when the time comes and bad things will happen to you. The idea with the 1/3rd rule is 33% goes into retirement, like a 401k, 1/3rd post taxes goes to rent, and the remaining 1/3rd goes to utilities, car payments, eating out, vacationing, visiting friends, and anything else you want. The reason the 1/3rd rule exists is because if you don't save 1/3rd of your income into retirement (or more) you will get boned. There is an epidemic right now of people committing suicide in their 50s, because they didn't follow this rule. They're now realizing it's too late and many all over the country are offing themselves. It's sad. Learn from the mistakes of those around you. Put 1/3rd into retirement.

[@lrm21]

It's always been this way. If you spend 50% it's because you choose too

[@edmunddantes7679]

Unfortunately rents are already ridiculous so the cap on increases isn't going to help.

[@georgantonischki1188]

Germany has a very renter friendly policy with rent increase limits and restrictions against eviction. There are even stricter regulations in Austria. Now, a quick check Germany and Austria have the highest rates of people renting vs home ownership in the world. This clearly shows that rent regulations are good for business and don‘t discourage investment in rent property. The last 20 years or so, the policy steered to more liberalization, but large empty places with super high rents show this doesn’t improve over living quality and landlords are complaining. Now due to shortages in some markets, cities encourage more socially adequate development through coops and the like, resulting in more joyful places.

[@lasqtst328]

2%-3% would've been impressive. 🤷🏾‍♀️

[@SwayTheBeast]

If you think rent control has zero negative implications, then please go take an economics course.

[@Lexman00]

It will turn out kinda like the projects, the people already there won't move for a long time.

[@luddity]

@@Lexman00 Leads to insurance fires.

[@valentinoramirez8137]

During the pandemic , landlords didn’t lower their prices even though demand was low because they can’t go back and raise it when everything gets back to normal . This takes supply and demand out of the equation.

[@lisagalley]

Apt mgr here in Bay Area in town without rent control. I definitely have seen property owners engage in predatory rent hikes. @ former owner of our building raised some tenant rents 25%+ one year purely to show prospective investors that the building was worth more money than it appeared. Those tenants ended up eventually being evicted for non-payment of rent and moving in with relatives, cause they couldn’t find another affordable place in the area. I’m glad there’s a state law capping most rent hikes but I’ll underscore other people’s comments that nothing in our current system deals with rent costs rising higher than wages. Many of the tenants I know all have side hustles in addition to full-time jobs to afford the rent. I see rentals applications from people with job titles that sound stable, but really aren’t like they used to be. Poor benefits if any, basically professional titles that are actually gigs. If states want to address a housing crisis they need to tackle destabilizing employment practices and low-wages, in my opinion.

[@Arcwol]

Then move to Detroit. Plenty of affordable housing there.

[@josezaragoza3188]

I got assaulted when i visited Detroit

[@JPPSrules]

Are there any good jobs there?

[@3bydacreekside]

Nahh...it'll drive up demand

[@quantum7690]

Their moving jobs up there

[@itloads]

the solution is to build more homes!

[@TheNeilDarby]

To many NIMBY boomers who would rather their house price appreciate than give the newer generations a chance.

[@emuriddle9364]

@@TheNeilDarby Well said.

[@rockwithyou2006]

The solution is to incentivize investors to build more homes by not enacting dumb rent control laws.

[@ninjanerdstudent6937]

Not all rentals are created equal. Luxury rentals are supposed to cost more because those are for higher income individuals.

[@handymack5324]

Increasing supply is the only way out. But how do you set the right price and make ppl pay according to the contract they sign?

[@m.burgesszbikowski8049]

Rent control IS one of the reasons for High rents! This fellow is lying through his sweet lips! Paradise is about to come from these people and all we get is The Very Rich and the homeless!

[@m.burgesszbikowski8049]

Combatant Analysis . How much about economics do you know? Do you know about the New York in the 1940's rent control numbers? I was in SF when they passed rent control, because of very high inflation in the 1970's. I am in the same Apartment building, Almost 50 years! Have you had a similar experience?

[@narata1541]

For those wondering what she means by "a out economics," it's basically the economics of New York and how it relates to cities such as San Francisco.

[@Flight522]

@Combatant Analysis if there is 5% limit each year i would max out that rate for "just in case".

[@evaristegalois8600]

Margaret Burgess Zbikowski Normally an increase of demand led to an increase in price followed by an increase in supply,this stabilise price. I will argue over market equilibrium. In San Francisco you have to be well connected and go through a lot of red tape to build residences or houses . This intervention of the state lower the supply, with an increasing demand price naturally rise otherwise their will be shortage . When the state provides “housing “ the contractors manage through lobbying and “others favour “ to do the least and be paid the most but mostly avoid competition. When you implement price control in certain extent you disincentive the construction of real state . In my humble opinion if the state took action it will be a lot more better if they provide at loan of 1.5 % to pe repaid in 30% and tax deductible than implement price control or or constructing insufficient residence that people don’t necessarily like

[@evaristegalois8600]

Price control =more Airbnb SAN Francisco is a touristic city .....

[@matthewliano]

Government should oversee and assist not control. California is constantly stepping Over the line.

[@razzlfraz]

@Sally Hillal Unions are a thing in the midwest, unless you're talking about teachers unions which exist in CA.

[@daniel212212]

It can also be lots of international wealthy, buying homes for large prices and not even occupying them

[@a4yster]

Meanwhile you can't build anything taller than 4 stories in SF, and vast docks, not used as such, are just sitting empty.

[@user-mz2tw8yk8o]

Some ideas to make housing affordable: 1. Lax the zoning laws 2. Convert golf course and cemeteries into housing development 3. Issue more house permits making it easier to build housing units 4. Build more mass housing units and fewer mansions and other luxury housing projects. Rent control doesn't work

[@infinitihomebuyers3656]

Check, check & check! All that is already happening in CA! Problem is they are building tons of condos, track homes, and apartment buildings but they are selling at market rate ($500k median) or renting at top of the market. Only a small percentage of these units have to be designated for low income individuals. However, someone making $40-65k/per year is not considered low income so they have to suck it up and pay high rents.

[@wtflexus6427]

Fastest way to drive away productive people out of the state. Why favor the tenant over the landlord who actually owns the property.

[@TheRogueRockhound]

Landlords are the productive ones?

[@TheRogueRockhound]

"So you will need a yearly 5 % increase in your wages to keep up ... and that's that dada"

[@wtflexus6427]

@@TheRogueRockhound they own the property so yes. They most likely own other properties and businesses.

[@daisylazy5326]

Wait so teachers, waitresses, janitors and anyone else who isn’t a wealthy enough person to own more then one piece of property aren’t productive? You got solid logic there

[@waterheaterservices]

Renters out number landlords, more votes for the glorious revolutionary humanist socialist people's Party, comrades.

[@robertmosher7418]

7% is +$140 to equal $2140 a month the first year....the first year! That's a lot for the first year. Add another 5%+2% inflation and now in one full calender year my rent will be $2290 with no recourse for redress of the price increase because along with the law prohibition on "unfair" rate increases, it does away with arbitration through the California state agency which used to represent renters. Plus, the two increases can be raised if the owners can show minimal amount of capital reinvested in the property. It's just flat stupid

[@joshuavergara8018]

I love how Dallas and Huston are just at 30% now, D.C is only cause all the politicians and their bureaucrats live there, and their the most free market economy in the union 0% property taxes or income tax. The ones who "try" to fix the situation are only make the process harder and more expensive for everyone.

[@DaveRynk]

the new rule incentivizes landlords to “mandatory” annual rent increases of 5% plus inflation. If they don’t they will be stuck at a lower rental rate. So in LA County up to April 1, 2019, CPI was 2.9%. Landlords then could raise their rent up to 7.9% this year. Over 10 years rent will increase at least 50% plus annualized year over year inflation. At the above rate it could theoretically and simply raise up 79% in 10 years. How much has rent increased in the last 10 years? Not 79%. I think I read someplace that it was 65%. The new rule hurts renters. Some landlords like their tenants and want to help their tenants by not having regular, annual rent increases. However, the new rule incentivizes “mandatory” annual rent increases. This is an example of another politician building their political resume.

[@sc358.]

Gotta love government intervention. Every industry they regulate gets so much more efficient and lowers cost for the consumer! Just look at healthcare, housing, tuition, asset peices via hurdle (interest) rate...

[@homewall744]

Like how the minimum wage forces collusion for the low end of wages. Without it, businesses would compete on wages, but the minimum gives them all a price collusion (that would be illegal if not done by government) target.

[@TheRogueRockhound]

This is exactly what is happening in Southern Oregon

[@aligonzalez3115]

I can’t kick people out of my condo for not paying their rent. I need new tenants. It can be very difficult.

[@aligonzalez3115]

I’m for rent control to an extent but I just need to be able to kick out tenants for ruining my property and not paying rent

[@wedeldylan]

@@aligonzalez3115 Rent control causes the supply of spaces available for rent to decrease (as it is no longer as profitable to rent out spaces), the quality of those spaces to deteroriate (as rent control causes demand to exceed supply, so there will always be enough demand no matter how moldy and cockroach infested the rooms are) and disincentivizes builders from creating new housing for rent because they will not be able to get a reasonable return on their investment. You should not be for rent control, especially if you are a landlord!

[@modestxmichelle]

@@wedeldylan so Americans don't deserve a place to live?

[@wedeldylan]

@@modestxmichelle Rent control causes the supply of housing available for rent to decrease and thus causes more people to be out of houses!!! Gosh!!! Please look fully into topics before having an 'opinion' based purely on morality and not at all on rationality. The right choice is one that factors in both morality and rationality. I used to think just like you before I looked at the data. Please educate yourself!

[@wedeldylan]

@@modestxmichelle Arguments made purely on the basis of morality led to the formation of the Soviet Union, arguably the most immoral society that has ever existed!

[@alek488]

Developers are building lots and lots of expensive housing, but no one ever moves in. Honestly, won’t this cause a bubble?

[@DesiredHeadshot]

Tax them for empty rent housing. So if they are trying find someone who are willing to overpay they have to pay while they do so. They can accept offers or pay for being greedy

[@jessicacole8404]

*sounds like bringing a garden hose to a wild fire*

[@newjerseylion4804]

Wild fires 🔥 that’s so close to home.

[@jakejones5736]

Actually, more like pouring gasoline on the fire.

[@Nystromj1]

There are already many regulations deterring new housing in those locations! Generally, only more expensive development are what's taking place and little housing for the 'average' person is being built This might just backfire, like much of the other progressive programs that have implemented. It might get even harder to find a place to rent. People are mostly naive/ignorant. They don't seem to understand that all this regulation, props prices up, playing into the hands of the rich, the large landlords/developers, and lining the pockets of politicians. The 'sheep' just get fooled, thinking this is helping them ...

[@punisher7335]

Just move to vegas rent is super low there last check on Zillow or trulia for a 2bedroom and 2 bath somewhere the 685.00 dollar range but remember not a lot of jobs in Vegas and a terrible school system.

[@maxinef6654]

My rent just went up by 4% for 2020. I’m in Maryland.

[@drew8642]

Housing cost should not increase more than 4% per year

[@firstlast7719]

I'm glad here in Toronto that rents are basically capped at inflation - which is 2%. Housing supply is low because of mass immigration and building restrictions that impede supply. It's no longer affordable for the average wage earner to live in major cities.

[@JHayler7]

To clarify does that 5% limit apply on the existing tenant. So the land lord cannot increase the rent by 5%+ for the existing tenant but does it also apply for a completely new tenant. So would that new tenant only get charged a maximum off 5% increase on what it the rent previously was ? Or can it be put up by 10% for the new tenant to reflect for example refurbishment that have taken place

[@jakejones5736]

All depends on the laws of local jurisdictions. 1482 places no limit on the amount charged to new tenants. But if a local law does, then it supersedes state law.

[@sofidingue2576]

5% + inflation is NOT even remotely reasonable for renters! This is just PR to attempt to make the rent ceiling strategy seem fair and balanced, but do the math if you’re a renter and already paying more than 30% of your monthly income, it doesn’t hold up at all. This is the attempt to cosmetically make it look like municipal governments are considerate of the affordability for ALL of their constituents, INCLUDING renters, but in reality, housing is STILL unaffordable for more and more renters and exacerbates the potential for homelessness. Where on earth did you think our homeless crisis came from to begin with!!

[@yuentsang6903]

Housing shortage here we come

[@WeMakeItRainz]

curious to see how this will effect the diversity of tenants living in California, landlords will now have a higher incentive to only pick the lowest risk/hassle tenants they can find, and also curious about the renovation rates, since they'll always find a tenant to live in a deteriorating house.

[@Galanty]

Rent control forces rent increases to maximum amount because owners have no choice but to raise to the maximum to maintain property current and future peoperty sales values. It is good for renters who never move, but bad for renters moving because rents are artificially pushed uo to maintain property values and rental incomes. I beleive rental unafforadabilaty is in large part unaforable due to rent control in certain cities over the last 30 years.

[@LonglivetheSovietUnion]

X Galanty so in other words landlords want more of your money?? Maybe they should stop??

[@Jaxxxxxxxxxxon]

Actually, this is going to hurt long-time tenants too (at least mine). I have one rental (my old house). Only $1500/mo for 3b 2ba single family in LA and haven't raise rent for approx 5 yrs. Average rent for similar properties is around 2500-2800/mo. My tenant is very stable so we don't bother to raise rent. However, my property manager told me and all his clients about the new rental control regulation. Just like what you said, we have to raise rent 7% each year until catching up market average. Otherwise, we will lose property value.

[@Galanty]

@@LonglivetheSovietUnion yes, it is a business for the investors in real estate. They take their money and look for a way to get a return on its value. The alternative is for those not interested in making money to pool their capital buy an apartment complex and make it a nonprofit coop. That way the nonprofit coop keeps rents down and in therory market values diwn. This was done in 1960s and 1970s, for example studenrofitt housing at UC Santa Barbara. But instead of growing the nonprofit with more no profit units, the owner renters students cared more about keeping their rents down then investing for future students. But if you really care, then you can build this nonprofut competitir in uour area. But in reality most, even renters are interested in keeping ir growing more money over solving this. Risis.

[@davecool42]

How about just the rate of inflation?

[@newjerseylion4804]

Banning rent increase is like banning rising blood pressure. The solution is housing deregulation which will lead to more supply and lower housing prices.

[@dennisvelintino8745]

its to late for that they already screwed every one its already to high they need to bring it down to were it was in 79

[@cwaddle]

5%+inflation rent increase cap is hardly a protection.

[@rockwithyou2006]

It is supposed to be a protection from demand shock

[@Maarttiin]

Ever since regulations were introduced, prices went up. If you want them to go down, eliminate regulations. Basic economics.

[@duncanbleak3819]

5%+ every year....Wow, such a deal. How about a sharp knife to the eyeball for a chaser?

[@Bourbon404]

If you had to pick one state to not take advice from on matters of housing...

[@jntj3007]

Exactly!!!

[@c87kim]

Let them do it, so that they can remind us why we ended it in the 70s.

[@mountaindew3201]

Umm. No, SF is more expansive than LA. Trust me I’ve lived in both locations. Currently left CA for AZ.

[@odemata87]

There's no simple answer to this. Landlords want to make money but are taxed and restricted on one end, while tenants want to live in an affordable place with leftover to save but their jobs aren't keeping up with their cost of living. Where are the plans to attack this problem from all angles?