PROPOSITION 10 DECONSTRUCTED: THE IMPACT AND EFFECTS OF RENT CONTROL

Tomorrow millions of voters across California will confirm their support or opposition of Prop 10, the controversial initiative that proposes to repeal Costra Hawkins and give cities the right to enact forms of rent control in order to address the shortage of affordable housing in California. But is Prop 10 the answer to affordable housing? The San Diego Union Tribune looks at the arguments for and against Prop 10 and concludes that rent control may actually do more harm than good. First, limiting rental income disincentivizes developers from building much needed housing. Without enough supply to meet demand the competition for available housing units will increase upward pressure on prices. That’s simple Economics 101. And while rent control may help some renters, the majority of renters are actually worse off due to the unintended result of the misallocation of housing. Then there is the final nail in the coffin of Prop 10..and it is a big one. It is not the right of the Government to tell individual single family home owners what they can charge if they choose to rent out their homes. When I go to the polls tomorrow I will be voting NO on Prop. 10. What about you?

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Keith Kaplan

CalBRE #01933707
Sothebys International Realty
9255 Sunset Blvd.
West Hollywood, CA 90069

keith.kaplan@sothebyshomes.com

310-646-7791

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