In November, California voters will vote on Proposition 33, a housing proposal that if approved will essentially provide cities the right to enact rent control on properties of single family houses as well as newer housing built past 1995.
High rent has been driving tenants out of their homes so it may initially seem like the best solution to the problem is to just impose rent control to keep rent from getting too high. However, the proposition fails to directly address the real problem — California’s housing crisis.
Proposition 33 would not automatically expand rent control statewide to cities, instead it would provide cities with the option of enacting new rent controls, therefore the rent control that the proposition is set to provide may not even reach intended housing projects. Rent control fails to provide long term relief to renters, especially low income renters who may not be covered by it.
Rent prices are not the only fees that are currently rising. For landlords, the cost to maintain their properties so that they may be suitable for tenants is very expensive in itself and it is important for them to keep their properties habitable so that they can help feed housing supply in California.
Supply for affordable housing is far lower than the demand, which helps explain why prices are so high. Voting yes on proposition 33 would halt the construction of newer housing projects that would help feed the high demand for housing.
Dealing with California’s housing crisis would be done much more efficiently with the construction of new housing that would help lower prices. Competition between renters and buyers increases when there are more choices for housing, this takes the power away from landlords who will not be able to raise rent as they will need to fill their increased number of housing units.
California voters should be careful that they do not slap a bandaid in rent control on the gaping wound that is California housing. Proposition 33 would only provide temporary relief. New housing that would be much harder to build if the proposition passes, is the real solution to our problem. Increasing supply would not only lower but stabilize prices for California renters.