John Douglas Steuart has long been a proponent of renter- and student-friendly policies that help make renting more affordable and easier for people who need the help. He recently discussed the importance of rent-control laws and how they can help renters who need help the most. He pointed to Berkely and Santa Monica as two of the best examples of how these laws assist people in tough financial straights.
Why John Steuart Supports These Rent-Controlled Laws
Rent control laws are designed to help low-earning people avoid expensive rent that they simply cannot afford. For example, Berkeley and Santa Monica both signed the toughest rent-control laws in the nation about 40 years ago, restricting how much landlords could increase rent. These laws have had a major impact on the area since their origin and have saved many people from bankruptcy.
For example, John Steuart points out how people in these areas can pay vastly different rent based on how long they moved into an apartment. A rent-controlled apartment may cost a new resident as much as $1,000 more than older tenants. This protection has helped older or lower-earning residents stay in better apartments but has also been a challenge for many new residents in the area, particularly when vacancy laws are not in effect.
How Changes Might Affect These Laws
Unfortunately for new renters, rent-control laws are not beneficial for them and have been particularly adverse due to measures like the 1995 Costa-Hawkins Rental Housing Act. This act would let cities set authority on rent how they wanted, such as putting rent control on apartments built after 1995. The Costa-Hawkins Housing Act specifically exempts these buildings from rent control.
Furthermore, John Steuart points out that repealing this law would remove vacancy control. These rules state that vacant apartments can be set at the market rate, which can cause a series of complex rents across a city that produce difficult and infuriating rates. Berkely and Santa Monica are particularly affected by these changes and could see major alterations in rent if the law changes and vacancy controls are allowed to return to the market.
What May Happen In These Areas
Rent could change significantly in these two areas if rent control laws are changed. For example, a study found that a one-bedroom apartment that would have cost $1,907 in 2017 could have gone for $900 under the city’s previous vacancy control laws. If these laws were allowed to come back by the removal of the Costa-Hawkins Act, vacant apartments could have frozen rent too.
John Steuart says that could mean a major improvement for a stifling rent situation. Tragically, close to half of all residents in this area pay at least or more than half their monthly income on rent. By taking control of the rent situation in this way, these harsh payments could be decreased. The economic impact on landlords and renters could also cause some trouble, making this a challenging debate.
