4 ms·

millennials in CA are disproportionately renters, not home owners. This bill will provide millennials with some extra security so they know their rent won't be

by tmh79 7y ago

millennials in CA are disproportionately renters, not home owners. This bill will provide millennials with some extra security so they know their rent won't be spiked and they'll need to move.

chaostheory 7y ago
imo It will still benefit the older generation more. There's now even less motivation for people to build more housing inventory to rent out. With ever dwindling housing inventory, it's first come first serve. Guess who's there first? "Economists from both the left and the right have a well-established aversion to rent control, arguing that such policies ignore the message of rising prices, which is to build more housing. Studies in San Francisco and elsewhere show that price caps often prompt landlords to abandon the rental business by converting their units to owner-occupied homes. And since rent controls typically have no income threshold, they have been faulted for benefiting high-income tenants." This is what would really help with the housing problem "State Senator Scott Wiener, a San Francisco Democrat, offered a bill that would essentially override local zoning to allow multiple-unit housing around transit stops and in suburbs where single-family homes are considered sacrosanct. The bill was shelved in its final committee hearing this year, but Mr. Wiener has vowed to keep pushing the idea." But the NIMBYs killed it for now https://www.nytimes.com/2018/04/17/business/economy/california-housing.html https://www.nytimes.com/2018/04/17/business/economy/californ... > This bill will provide millennials with some extra security so they know their rent won't be spiked and they'll need to move. I'm not sure that's how rent control works. Unless I missed something, your rent is only capped if you don't move.
pitaj 7y ago
At the cost of further increasing the price of rents across the board due to limited housing supply.
- tmh79 7y ago
  did you read the article or understand the bill? This bill doesn't impact construction finance because it doesn't apply for the first 15 years after a building is constructed (pretty much all residential construction loans use a 15 year rent projection for valuation). Additionally, the median market rent increase is a few percentage points lower than the rent increase allowed by this law. The main thing the law does is allow people who are being price evicted to be price evicted over 3 years instead of 60 days.
jethro_tell 7y ago
until they need a two bedroom for a kid. rent control works great if you have your shit together and have no life changes coming up. If you're settled in your life and you already have a place, rent control is great, if you're going thought the life change stage of your life, rent control doesn't help to much. Rent goes up to market when you move out to go to college, then it goes back to market after you leave college to get that first job, then when you want to move into a place by your self or with a significant other, back to market. Need something bigger to start a family? Back to market. Once you finally get your shit together and ease into a stable part of life (if you haven't bought a house) your rent is stable. But it's not a big help until you're stable. So while most people are renters in the younger demographic, rent pretty much stays at market for the majority of the time through 20's and 30's. The answer is still more housing to lower the overall price of housing.
- tmh79 7y ago
  "The answer is still more housing to lower the overall price of housing." I am not arguing against that at all, but if we decide to go extreme SB50 style urbanize California we wouldn't see real price impacts for maybe 5 years at the earliest. What are we supposed to do between now and then, just accept 15% YoY rent increase?
  - jethro_tell 7y ago
    IF this was passed at the same time as laws that allow more housing and tapered off after the expected return of more houses, I'd be fine with it. But as it stands now, the idea of rent control until more housing is a pipe dream since the more housing part never seems to come. The studies are clear, rent control is a benefit to a few but long term doesn't really add much value and instead makes the market stagnate in funny ways.

by tmh79 7y ago

millennials in CA are disproportionately renters, not home owners. This bill will provide millennials with some extra security so they know their rent won't be spiked and they'll need to move.

chaostheory 7y ago

imo It will still benefit the older generation more. There's now even less motivation for people to build more housing inventory to rent out. With ever dwindling housing inventory, it's first come first serve. Guess who's there first? "Economists from both the left and the right have a well-established aversion to rent control, arguing that such policies ignore the message of rising prices, which is to build more housing. Studies in San Francisco and elsewhere show that price caps often prompt landlords to abandon the rental business by converting their units to owner-occupied homes. And since rent controls typically have no income threshold, they have been faulted for benefiting high-income tenants." This is what would really help with the housing problem "State Senator Scott Wiener, a San Francisco Democrat, offered a bill that would essentially override local zoning to allow multiple-unit housing around transit stops and in suburbs where single-family homes are considered sacrosanct. The bill was shelved in its final committee hearing this year, but Mr. Wiener has vowed to keep pushing the idea." But the NIMBYs killed it for now https://www.nytimes.com/2018/04/17/business/economy/california-housing.html https://www.nytimes.com/2018/04/17/business/economy/californ... > This bill will provide millennials with some extra security so they know their rent won't be spiked and they'll need to move. I'm not sure that's how rent control works. Unless I missed something, your rent is only capped if you don't move.

pitaj 7y ago

At the cost of further increasing the price of rents across the board due to limited housing supply.

tmh79 7y ago
did you read the article or understand the bill? This bill doesn't impact construction finance because it doesn't apply for the first 15 years after a building is constructed (pretty much all residential construction loans use a 15 year rent projection for valuation). Additionally, the median market rent increase is a few percentage points lower than the rent increase allowed by this law. The main thing the law does is allow people who are being price evicted to be price evicted over 3 years instead of 60 days.

jethro_tell 7y ago

until they need a two bedroom for a kid. rent control works great if you have your shit together and have no life changes coming up. If you're settled in your life and you already have a place, rent control is great, if you're going thought the life change stage of your life, rent control doesn't help to much. Rent goes up to market when you move out to go to college, then it goes back to market after you leave college to get that first job, then when you want to move into a place by your self or with a significant other, back to market. Need something bigger to start a family? Back to market. Once you finally get your shit together and ease into a stable part of life (if you haven't bought a house) your rent is stable. But it's not a big help until you're stable. So while most people are renters in the younger demographic, rent pretty much stays at market for the majority of the time through 20's and 30's. The answer is still more housing to lower the overall price of housing.

tmh79 7y ago
"The answer is still more housing to lower the overall price of housing." I am not arguing against that at all, but if we decide to go extreme SB50 style urbanize California we wouldn't see real price impacts for maybe 5 years at the earliest. What are we supposed to do between now and then, just accept 15% YoY rent increase?
- jethro_tell 7y ago
  IF this was passed at the same time as laws that allow more housing and tapered off after the expected return of more houses, I'd be fine with it. But as it stands now, the idea of rent control until more housing is a pipe dream since the more housing part never seems to come. The studies are clear, rent control is a benefit to a few but long term doesn't really add much value and instead makes the market stagnate in funny ways.