Nov. 5 is general election day for Californians, and there has been much debate among Angelenos about housing, more precisely, around rent control. Add a general statement here as to why this is bad.
Proposition 33 is on the ballot, and it would expand local governments’ authority to enact rent control on residential properties. This proposed law would force landlords and housing associations to suspend the construction of more affordable housing projects and cancel a plethora of housing state laws that have already been passed and put into effect.
The Costa-Hawkins Rental Housing Act of 1995 exempts landlords from certain rent control ordinances, as well as resets the rent for their properties following a building vacancy or after the last rent-controlled tenant has moved out. This allows owners to adjust the price of the building to better match the current market value of the property. If Prop 33 were passed, Costa-Hawkins would be repealed.
Real estate, rental and leasing consume nearly 20% of the state’s gross domestic product (GDP). With government regulations placed on this market, the GDP might decline.
The argument for Prop 33 is the evident housing crisis faced by many across the state, but implementing rent control will only worsen this epidemic. With a hard lock on rent prices, investors and developers who want to build more housing complexes will see no incentive to create more properties for families to move into.
This is not the first time that this proposition has been on the ballot in California. Voters have repealed this motion twice already, having the foresight to see how such a law can cause more damage than it claims to alleviate, especially to those most vulnerable. Californians must reject the proposal for a third time and take the opportunity to explore more sensible options like creating more affordable housing units that will make the market more competitive while immediately helping those who are experiencing housing scarcity.
California has recently taken the first steps towards doing so. Gov. Gavin Newsom recently launched the Prop. 1 Homekey+ initiative on Sept. 19, which helps build affordable and supportive housing for veterans and other individuals, such as those with mental health and substance abuse issues, who are at risk of experiencing homelessness. This initiative will hopefully make a dent in not only the housing crisis but also the ever-growing homelessness issues many of our veterans and fellow Californians face.
Prop. 33 would worsen the housing market in California. There is no need to revoke Costa-Hawkins Rental Housing Act of 1995, when Newsom is already proposing solutions to fix the present crisis.