Newsom announces deal to Cap Rising Rent Prices (real estate, 2014)

[CaliRestoration]

https://www.nbcbayarea.com/news/cali...g3ceZTw2-kZ7Ac

California Gov. Gavin Newsom reached a deal with apartment owners and developers Friday on legislation that would cap how rapidly rents can rise as the state grapples with a housing crisis.

The deal would cap annual rent increases at 5% plus inflation, with a 10% maximum increase. That's lower than the 7% threshold lawmakers had previously negotiated amid strong resistance from the real estate and development industries. Staff members Newsom's office shared details of the deal, which is not yet in print.

[Vic Romano]

Isn't 5% plus inflation 7% at this point in time? Or was the previous threshold 7% plus inflation?

[Electrician4you]

Originally Posted by Vic Romano

Isn't 5% plus inflation 7% at this point in time? Or was the previous threshold 7% plus inflation?

Previously there was no limit as long as it wasn’t rent control.

Hell even at 7%- a max of 10% it’s still a pretty hefty amount depending on your current rent. You can kiss good bye all those my landlord only raised my rent $40-$50 every once to two years or my LL never raised my rent in 5 years.
Because even with this law in place there will be people who have $2500 a month rent and will not be able to withstand a $180/$250 a year raise.

I can tell you that every person I know who has rentals is going to raise rents yearly now for sure as this is money they never recapture if they have the same tenants.

[Vic Romano]

I was referring to the 7% "negotiated" in the article.

[PhoenixSomeday]

I'm assuming this only applies to existing tenants and does not apply when the rental changes tenants? In that case it's easy, landlords are just going to evict tenants for a reason that marginally satisfies the law such that a lawsuit also won't stand up, then offer it up for rent at the price they really want. Rinse / repeat whenever the "market value" gets too far above the existing tenants cap.

[JGC97]

Interesting. The governor wants to do what was initially on the ballot last election and defeated by voters?

[Finper]

Originally Posted by HereOnMars

Interesting. The governor wants to do what was initially on the ballot last election and defeated by voters?

Newsome doesn't care about any stinking voters or election results. Look at what he did to the death penalty. Put your seat belts on citizens he's just getting started

[JGC97]

Originally Posted by Finper

Newsome doesn't care about any stinking voters or election results. Look at what he did to the death penalty. Put your seat belts on citizens he's just getting started

Yes, I recall the DP issue, too. Still it has me questioning how this guy was elected when he's going against some of the things voters wanted? It's really confusing

[BB_210]

The impending prop 13 repeal will cause property ownership to fluctuate. It's possible we won't be able to pass on the cost to renters with this cap.

[mysticaltyger]

The best way to cap rents and home prices? Build more housing. Even liberal media outlets have been saying it for the last several years:

Blue America has a problem: Even after adjusting for income, left-leaning metros tend to have worse income inequality and less affordable housing.

https://www.theatlantic.com/business...rdable/382045/