Volunteers in support of rent control at Pasadena city hall Monday, March 28, 2022. Left-wing activists in 2018 and 2020 tried to convince Californians to support a statewide initiative that would usher in the most extreme rent-control measures imaginable. Despite the state’s Democratic political tilt, voters wiselyThe same controversial group, the AIDS Healthcare Foundation, apparently has money to burn and is back with a similar measure in November.
Unfortunately, government construction restrictions have caused the housing shortages that drive up rent prices to absurd levels. We understand why Californians are frustrated by rising rents, but slappingon rents discourages investors from building new apartments, causes them to delay maintenance and encourages them to turn them into owner-occupied properties. Although it artificially lowers rents for some tenants, rent control drives up the overall cost of rents in a city.
Supporters of Prop. 33 downplay those scenarios. They say it’s only about giving cities the ability to pass rent-control measures that are tailored to the local situation. But we have a good idea how liberally run cities will react. There will be few limits. If the measure passes, we expect a mad rush out of the rental business. Voters can again stop the madness before it starts by voting “no” vote on Proposition 33.