Calif. Senate advances Bill to limit rent increases statewide

[Scott Mac]

They want to limit rent increases to 5% plus inflation, up to a max of 10% a year.

Any thoughts on this?

https://www.ocregister.com/2019/09/10/state-senate-advances-statewide-caps-on-rent-hikes/

[Robert C.]

@Scott Mac, It passed the assembly today so it's going to be law. Actually, for people who have been keeping up with rents around the Bay Area and Los Angeles, I think it's going to help create a floor for rents given the timing in the cycle plus our massive housing shortages. Landlords are going to be that much more reluctant to lower rents in any sort of a downturn if they know they have to wait years to bring it back up. And it's like what happens at the gun store when the government starts talking about gun control. In this case, anyone who was being nice about the rents isn't going to be as friendly anymore. I've heard anecdotally that MF buyers have been paying even more of a premium for buildings with close-to-market rents. 

Still stupid legislation, but I think some of us are going to actually benefit from it.