California’s Proposition 10 Would have Devastating Impact on Property Values
The Costa-Hawkins Rental Housing Act prevents cities from applying rent control to single family rental properties. Proposition 10 on the November 2018 ballot would repeal Costa-Hawkins and give cities unrestricted power to control rents on all types of rental properties, including single family homes.
Single family rent control would decrease property values for homeowners by 10% to 15% over time and dramatically reduce the supply of housing for the 2.1 million households in California who rent single family homes, according to a new report, “The Case for Preserving Costa-Hawkins: The Potential Impacts of Rent Control on Single Family Homes,” released today by Rosen Consulting Group and the Fisher Center for Real Estate & Urban Economics at University of California, Berkeley.
“Proposition 10 is a threat to anyone in California who lives in or owns a single family home,” said Ken Rosen, Chairman of UC Berkeley’s Fisher Center and Chairman and Founder of Rosen Consulting Group. If Prop. 10 passes and cities expand rent control, “home prices declines would not be limited to those who own rental properties, but would affect all homeowners in the community,” said Rosen.
The report, the third in a series of papers examining the economic and housing market impact of rent control, highlights the ways that extending rent control to include single family homes would be a threat to thousands of small businesses, millions of California homeowners, and the large number of low and moderate income families who rely on renting homes.
The full report is available here.
Previous reports in this series: