Costa-Hawkins Rental Housing Act reform: Difference between revisions

== References ==

 

*California Legislative Information. "[https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506 AB-1506 Residential rent control: Costa-Hawkins Rental Housing Act]." (bill text, history, updates).&nbsp;[https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506 https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201720180AB1506].<br/> &nbsp;

*Diamond, Rebecca, Tim McQuade, & Franklin Qian (2017). “[http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco].” NBER working paper, October 11, 2017.&nbsp;[http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf http://conference.nber.org/confer//2017/PEf17/Diamond_McQuade_Qian.pdf].<br/> ''"Abstract:&nbsp;<br/> In this paper, we exploit quasi-experimental variation in the assignment of rent control in San Francisco to study its impacts on tenants, landlords, and the rental market as a whole. Leveraging new micro data which tracks an individual’s migration over time, '''we find that rent control increased the probability a renter stayed at their address by close to 20 percent. At the same time, we find that landlords whose properties were exogenously covered by rent control reduced their supply of available rental housing by 15%, by either converting to condos/TICs, selling to owner occupied, or redeveloping buildings. This led to a city-wide rent increase of 7% '''and caused $5 billion of welfare losses to all renters. We develop a dynamic, structural model of neighborhood choice to evaluate the welfare impacts of our reduced form effects. We find that '''rent control offered large benefits to impacted tenants during the 1995-2012 period, averaging between $2300 and $6600 per person each year, with aggregate benefits totaling over $390 million annually.''' The substantial welfare losses due to decreased housing supply could be mitigated if insurance against large rent increases was provided as a form of government social insurance, instead of a regulated mandate on landlords."''<br/> &nbsp;

*Dillon, Liam. “[http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html Proposal to expand rent control in California fails to advance.]” LA Times, 11 January 2018.&nbsp;<br/> [http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html http://www.latimes.com/politics/la-pol-ca-rent-control-expansion-bill-dies-20180111-story.html].<br/> &nbsp;

*McFadden, Chuck. “[http://capitolweekly.net/rent-control-2018-ballot/ Rent control may roil 2018 ballot.]” ''Capitol Weekly.'' [http://capitolweekly.net/rent-control-2018-ballot/. http://capitolweekly.net/rent-control-2018-ballot/.&nbsp;]<br/> &nbsp;

*McFarlane, Alastair. “Rent stabilization and the long-run supply of housing.” Regional Science and Urban Economics, Volume 33, Issue 3, May 2003, Pages 305-333.&nbsp;DOI: 10.1016/S0166-0462(02)00031-5<br/> [https://doi.org/10.1016/S0166-0462(02)00031-5 https://doi.org/10.1016/S0166-0462(02)00031-5].<br/> ''"Abstract:&nbsp;<br/> This paper examines the impact of moderate rent controls on the construction and replacement of urban housing. It studies a common form of rent regulation that limits rent growth to below-market increases but permits landlords to set the base rent at free market levels and allows them to re-set rents when the incumbent tenant vacates, after which rents are re-controlled (‘vacancy decontrol–recontrol’). '''One of the primary insights is that neither the timing nor the density of construction is affected by rent stabilization when base rents are perfectly flexible. Allowing landlords to set the initial contract rent lets them capture the benefits to the renter of rent stabilization. Perfect capitalization of rent stabilization into a higher base rent provides the landlord with a free market rate of return and thus does not distort development activity.''' However, redevelopment of land will be hastened because rent stabilization complemented by vacancy decontrol–recontrol increases the difference between rents before and after redevelopment, increasing the opportunity costs of postponing redevelopment. Extensions include an analysis of other common rent regulations and the impact of rent stabilization on the urban rent gradient."''<br/> &nbsp;

*Murphy, Katy. “[https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/ California considers repealing rent control restrictions.]” Mercury News. 11 January 2018. [https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/. https://www.mercurynews.com/2018/01/11/california-considers-repealing-rent-control-restrictions/.&nbsp;]<br/> &nbsp;

*Murphy, Katy. “[https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/ Rent-control policy `likely fueled the gentrification of San Francisco,’ study finds.]” The Mercury News, 2 November 2017. &nbsp;[https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/ https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/].<br/> ''(referring to [Diamond et al 2017]).&nbsp;''<br/> &nbsp;