what about the laws that prohibit apartment blocks? The main reason rents is going up is that demand is outstripping supply. The laws that restrict renting via zoning and that restrict high rises are the main reason the housing supply is limited. This is nothing more than government trying to 'fix' a problem they created by exerting themselves more into the market they should just get out of.
Californian Democrats block any changes in zoning laws. Current ones benefit them, the same way rent control benefit only people who already live there, not the people who will want to move in in the future
Yeah, i think the title for the video is very fitting. The girl be like "if cali could do it and it works out, it can lead to other states doing it" god no
@@NZH00 most of the high rises in NY aren't apartments. There are two main reasons LA and the like don't want high rises: more traffic and a decreased real estate cost. The first is more understandable, infrastructure costs is a real issue and traffic is already famously bad. The second is nothing but cronyism.
I would like Americans to know about affordable housing in Russia and in General what life looks like in Russia, therefore, we can understand that in Russia everything is not so bad as the opponents of Russia declare with the help of propaganda! If it will be interesting to know something about Russia, here is more information I live in the provincial city of Perm: ua-cam.com/video/JbGhEoPwx0w/v-deo.html today in the labor market, the salary we have is this: perm.hh.ru and perm.zarplata.ru/vacancy/yandex ($300 part-time or light work, and up to $ 2,000 full-time, or business trips) the prices of products in stores: semya.ru/sale/vremya-nizkikh-tsen/ another retailer: edadeal.ru/perm/offers The rate of $ 1=64 rubles, but because of the parity of the purchasing power of the ruble, $ 100 in Russia (for of small taxes, low cost of energy resources, Russia's own raw materials, etc.) is not the same as $ 100 in the United States (for example, the defense budget of Russia is $ 50 billion, and the Pentagon budget is $ 730 billion, but in total about $ 120-150 billion is spent on the purchase of equipment and maintenance of the Russian army in rubles and how much the Pentagon spends on the same amount of procurement and maintenance of the army, so it is wrong to consider the ruble to the dollar in this case)! So is built and evolves Russia-schools, hospitals, are opening production (information is updated every 24 hours): sdelanounas.ru/blogs/ Secondary education for free, higher education free, if you type a certain evaluation under the end schools (such students majority), and if paid, then have us will from 800 until 1,200$ in year. Medicine is free under the insurance policy (the policy can be obtained once and for life, even if you currently do not work anywhere, the policy is still always valid!), but there are also paid clinics, for example vision correction from 300$ Prices for eye surgery services: perm.3z.ru/price/ dentistry-to put an implant (I recently did myself) the implant itself with the operation costs from 300$ + from 300$ the crown itself on it. The prices for dental: prodoctorov.ru/perm/uslugi/stomatologiya/ Every year, hospitals are built all over the country. In just one year 2019 many hospitals were built across Russia: sdelanounas.ru/blogs/129131/ The price of cars in our city: www.avito.ru/perm/avtomobili/inomarki?radius=200 the price of houses: www.avito.ru/perm/doma_dachi_kottedzhi/prodam/kirpich?cd=1 apartments: www.avito.ru/perm/kvartiry/prodam?f=578_70b0.549_5697-5698-5699 (Rent a simple apartment 180-250$: www.avito.ru/perm/kvartiry/sdam?pmax=16000&pmin=12000&f=550_5703-5704 more than 400$: www.avito.ru/perm/kvartiry/sdam?pmin=25000&f=550_5705-5706 ), For information here are our Russian girls, can anyone want to get acquainted and start communicating the popular Russian network "Vkontakte": vk.com/album-64279904_186139394 and vk.com/albums-64279904 there are many registered Europeans and Americans. So that not everything is as bad as they say about Russia in the Western media! Taxes, as one of the lowest in Europe, for example for their real estate (7 hectares of land with buildings), I pay $ 1,700 a year, and for example for car (Volkswagen Touareg 245 HP) $ 220 a year, and insurance on the car (given my experience) is $ 170 a year. Mortgage loan for real estate from 7% per annum for up to 30 years (at the government level, recently considered the question that the banks of Russia will plan a significant reduction in the mortgage rate over the next three years), you can take a consumer loan of up to 100 thousand $ for up to 5 years and build your own house of brick and concrete, and not from plywood and insulation, as in the United States for $300 thousand! You can buy a ready-made business, here are the options in our city: www.avito.ru/perm/gotoviy_biznes Here is how the famous American MMA fighter tells about Russia Jeff Monson who moved to Russia some years ago described (how was he received in Russia) and last year received the Russian passport - (interview in English: ua-cam.com/video/CC9-oo0o3ZM/v-deo.html ) On two countries lives American boxer Roy Jones, too, received Russian passport (he summer 2019 opened world championship on Boxing in city of Yekaterinburg - 250 miles from my town: ua-cam.com/video/pIdsOxNkR3I/v-deo.html ): ua-cam.com/video/oyTBTw7SQa8/v-deo.html American the actor Steven Seagal so same received Russian passport: ua-cam.com/video/cImFfIE2p10/v-deo.html Here is the UA-cam Channel of American Justas Walker who lives in Russia for more than 20 years and speaks Russian without an accent. A few years ago, he bought 100 hectares of land in the Altai mountains (250 acres in American) and is engaged in farming and cheese production: ua-cam.com/video/_UyyDapvyDc/v-deo.html Here is another American Tim Kirby who has been living in Russia for many years and is engaged in journalism, also speaks Russian well: ua-cam.com/users/results?search_query=тим+кирби And here is an American who moved to Russia, opened his hairdresser and does not know Russian at all: ua-cam.com/video/ra_iHaVlG0U/v-deo.html and ua-cam.com/video/dD1MoSsaCsw/v-deo.html
Wages have increased 13% since the 1980s while total compensation has increased 45%. The middle class is shrinking because everyone is getting wealthier. (Data from US Census)
@Jesus Christ I agree. A lot of us are alone, stuck in unemployment/minimum wage, and some health problems. And yet, we're supposed to just "stop complaining?" Those who are privileged wouldn't understand. One of my former colleagues only cleared $350/month in his paycheck. Unless you have supportive, non-dysfunctional friends and family (Lol), you can't live on that.
5% ?? well that assumes everyone in the city is getting 5% annual raises , and most arent .. Most companies give 2-3% raises meaning people are still getting poorer by the day
Another problem driving high rents are local property taxes and fees on homeowners and businesses. They are extremely high in some cities and these costs are being passed along to consumers. Some homeowners in the Chicago area are paying $15k and $25k per year. I imagine businesses pay even more.
That doesn’t even include inflation with the money printing the Fed is doing. Meaning rent goes up by 5% and so does the cost of buying groceries and other Living expenses not just Housing
Sounds like the free market at its best. Commifornia should look at zoning deregulation first, then let the free market play out. No one is forcing these tenants to live in the country's worst state.
@@c87kim The housing crisis wasn't caused by building houses to match demand, rather by lenders issuing subprime mortgages to unqualified borrowers. You are correct though that more laws/regulation would have stopped these NINJA loans from happening in the first place.
Where are you going to build them though? LA is already extremely sprawling and you can't build new houses without forcing people to drive 2 hours to work
@@NZH00 If no more room to build then people will move elsewhere if they can't afford to live in LA. No one is forcing tenants to live in LA or drive two hours to work. When rent prices go up, people move away, and the free market will provide as it has for quite some time.
California is where rich people live like nyc it’s where most of the big businesses are apple, entertainment like record labels, movies, and tv productions.
My landlord raised rent by 300 in a year . we have been in the same place for 14 years. He fixes nothing nor has he painted . We have the original carpet from before we moved in .
At least it’s not San Jose! My lease ended and our landlord raised the rent $1700. We didn’t even have working heat 😂 Good thing we were all graduating seniors but still insane for the next tenant. I hope you are able to get your landlord to make repairs! r/legaladvice on reddit is good if you need done people to point you at city codes or sources!
@@1313aves No, cities regulate private property. Most cities prohibit you from building a 500 foot tall wall surrounding your property, or running a gambling ring out of your basement, or renting your home without adequate heat and water, or turning your basement into a rental without a certain ceiling height, ventilation, or flood protection. The list of things you can't do with your private property is pretty long actually.
@@evaristegalois8600 in theory it would work, but it's usually about $3,000 per month. I can get something cheaper if I'm willing to drive about 2 hours one way to work and 2 hours back and that's not counting the traffic.
CA voted against Rent Control, yet our governor is forcing it down our throats. Economists are nearly unified in agreement that rent control does not work. This is simply a tactic of buying votes. Rent control increases market rents above what they would be without it. Hence why developers love it, since it brings up the value of new buildings not subject to it (for 15 years). What we need to do is build more housing.
Yup law of supply an demand . Because government already makes building cost so much and if rent control is passed than the supply is low (no competition) and demand will still be high meaning they can continue to charge high prices.
salaries are not increasing probably because you are not growing. The onus is on you to try to get more skills and get a better job or ask for a raise. You need to keep looking around. Don't end up staying at one place for 20 years.
@@rockwithyou2006 you keep replying to everyone who mentions wages not increasing like you know what they make lol your statement to everyone still doesn't change what this guy and many others have said about stagnant wages
@@rockwithyou2006 no you can't dude. Some people are disadvantaged in various ways, and most employers don't want to pay their workers. Or are you seriously going to deny those things because your personal experience is that you've pulled yourself from your own boot straps and worked hard? "I'm not lucky or privileged, I just work more harder than you!" Is a trite and naive opinion. If you honestly believe that employers play no part in increasing wages than you're a fool.
"policies that made you leave" financial success? Housing costs are cheap in places that are poorer. This is true in literally every single nation on earth
I’m interested to see how this will play out on the state level. It should stay like that, state by state decision. A federal law capping rent increase should never come
@@AdamSmith-gs2dv This is not classic price control. 5% on top of inflation yields an *inflation* *adjusted* real increase of 165% after 20 years. Its purpose is to control flagrant gouging. This is why it doesn't apply to more than 80% of rentals in hot markets.
The law was created to ban the practice of landlords offering a low rent, then landlords taking advantage and cranking up the rent often 20%+ and hope the tenant stays. This law restricts that sort of behavior, but only mildly. Instead of it happening in one year, it happens in three years. imho 3% + inflation would have been fair. A 7% yearly increase almost defeats the point.
5% + inflation is NOT even remotely reasonable for renters! This is just PR to attempt to make the rent ceiling strategy seem fair and balanced, but do the math if you’re a renter and already paying more than 30% of your monthly income, it doesn’t hold up at all. This is the attempt to cosmetically make it look like municipal governments are considerate of the affordability for ALL of their constituents, INCLUDING renters, but in reality, housing is STILL unaffordable for more and more renters and exacerbates the potential for homelessness. Where on earth did you think our homeless crisis came from to begin with!!
This is allready law in Vancouver, british columbia but if your tenant leaves your alowed to do renovations and jack up the rent again. Moral of the story is theres allways a way around the game and the rich will continue to play the game . Coffin apartments (like Hong kong) coming to a city near you.
@@1queijocas oh yeah you genius .. Wait wait wait wait did you just tell me that I didn't know what I was talking about ？？wow wow wow. Ok. A small fraction of what you said did make sense which is the new construction does be blocked by sb. But is it the hk government？you think the government really has a say on that ？ Come on capitalism there dude, especially a place with enormous wealth gap, those property developers would let new communities appear ？you are not informed
It's fair. If you go lower than that, then you aren't being fair to the landlords too. These cities are expensive to live in anyway, if it's not rent putting a hole through your wallet, it will be something else, like high taxes. The better answer is to just move somewhere else, stop wanting to absolutely live in an expensive city just because you think it's a "beautiful and fun" place to live in. We have to adapt and seek new places.
@@Lexman00 I honestly hate this mindset. You bring no solutions to the table. This will happen statewide and it will get to the point were a heavy majority of the people will become homeless.
@@Hoi-art Rent increase is in direct relation to overhead costs for landlords. As the value of a home increases for example so does the cost of maintaining that home (tax increase, insurance, maintenance). As a landlord I lose money every year I don't increase rent. I have properties where I lose $500 or more per month fully rented. I have to increase rent or sale that property to not lose money every month. Of course there are bad landlords out there but it's not all of them.
No it's not. It depends entirely on the balance of supply and demand in the area. 8% rent increases in some areas could be so low that it causes shortages.
@@kingbrend222 I understand that but you can't make money when the minimum wage refuses to go up, It's physically impossible to profit off of the poor and systematically keep them poor. The solution is to up the wage at a MAXIMUM wage to keep up cost so the individual wins, not lose.
California property is already capped at 1% of assessed value and 2% yearly increase. The 5% + inflation cap is actually very generous to the landlords en.wikipedia.org/wiki/1978_California_Proposition_13?wprov=sfti1
It's been like that in CA for a long time now. Property tax caps have given the average middle upper class and upper class some of the lowest taxes in the country and it's hurt our roads and schools because of it.
James Russell Very few jobs have salaries that increase greater than the cost of living on an annual basis year over year. Eventually you would price yourself out of renters.
@@savagecub Eventually, parhaps, but clearly not yet if people still keep renting. And even if the landlords did reach that point where there were no more buyers all they would need to do is adjust slightly.
@@savagecub if your rent has become unaffordable, it means people living around you have started making more than you. Its really that simple. Landlords cannot charge arbitrary rents, they also need renters. They don't enjoy finding a new tenant. One month of vacant house can cost 2300$ to the land lord in a place like bay area.
@@108nighthawk also quit their job as it doesn't pay enough for rent. then we get Detriot and life moves on until businesses pay enough for rent and housing costs.
As a landlord, I don't support the California law, BUT, overall it's not that bad. It just means tenants won't see any major improvements in their buildings while they live there and you may see fewer perpetual rent contracts.
Yeah I noticed. They also mentioned how LA is more expensive than SF. That ain’t true cause I lived in LA first and then SF. SF was way more expensive than LA
They will do 5% raise every year now or else they will lose money. This will be bad in the long run. They need to do by fair market share or have housing zone limits.
Here is a solution that nobody is talking about. Don’t allow out of country investors to buy properties in a city that they will never occupy. Case in point Vancouver, Canada, rents having increased tenfold over the past 10 years because all these rich Chinese people come in and buy up all the housing stock just to park their money overseas in a country they never live in. Also, cut regulations to make it cheaper to build houses! Or incentivize different types of housing like 3-D printed houses, tiny homes, fast fabricated homes. Also, get rid of the not in my backyard laws that prevent developers from going into neighborhoods and building multi families to drive prices down. Those are the people that have been driving up housing costs because they don’t want to live next to poor people.
@@TigerAskari_ that's where all the jobs are I lived in small town Ohio not very many jobs are available because they are taken up by baby boomers and generation x if your any younger they will make you work 2nd shifts you can not choose and they will only hire you as a temporary worker there is no future for millenials in the workforce that's why most of us are moving to bigger cities and using jobs as assets to become entrepreneurs.
@@KennyakaTI saving takes time especially when most companies pay their employees biweekly to fit their budget cost you literally have to have multiple streams of income in order to move up in life or you can just live comfortably with budgeting on what you can afford.
The US Census reported that NY lost 76,000 people. This is the 4th year in a row that this has occurred. Meanwhile, rent is still rising. Theyre building like 15 new buildings all across the Bronx yet no one is moving in. They also refuse to lower the price to rent. I cant wait to see how this plays out
I wrote my bachelor thesis about rent control in Berlin. It was introduced by Hitler in 1936 but lasted several decades even after WW2 ended and was hardly abolished due to public resistance. I found out that rent control made more houses uninhabitable than the bombing in WW2.
@@nam5do Right now we lower the minimum wage every year by inflation. Business that doesn't break 5% net profits is a dead buisiness that burdens my tax dollars. No one wants to work for free, lowering minimum wage lowers GDP of a nation, and lowers the bar for your pay as a citizen.
@@ndo5366 It depends on what you think small businesses should be. Should the owners be a happy middle class mom and pop who barely scrape by paying low wages; in this competitive market. Or a buisiness savvy owner who is aggressively trying to grow a business and change the world. I do agree many restaurants and common dream businesses are closing, but the ones who want to compete are doing fine. Unfortunately if you're not up to compete you're not a capitalist. I would like to hear your thoughts.
Won’t work at this point, it will just devalue our money more than it already is; we will have the same as we’ve had before. Now statewide minimum wage hikes for states that have extremely high living cost could see Benefit. Most jobs pay 10+ in our Midwest states which is a liveable wage if budgeted correctly.
5% a year is still too much. If wages continue to remain stagnant and the cost of everything goes up every year there becomes a breaking point where people just have to put on yellow vests and occupy the streets.
Dawa J wages surpassed inflation for the first time in decades this year? Wages are growing, however housing and utilities are rising quicker. Thus, the reason for this video. May be small, but an important distinction.
The rents are high, we don’t need a 5% increase cap, we need a decrease on the rent total. We need a wage that keeps above inflation or on par and match our wage to current year.
Artificial minimum wage is not needed if government stops price gauging of rent all together. Price of rent is like price of tuition. The more money you have, they higher they'll hike the price. Increasing minimum wage won't solve anything if the price of everything is allowed to rise.
Rent control just incentives landlords to raise rents every year now in order to keep up with growth. The solution is too allow for higher density developement.
Some ideas to make housing affordable: 1. Lax the zoning laws 2. Convert golf course and cemeteries into housing development 3. Issue more house permits making it easier to build housing units 4. Build more mass housing units and fewer mansions and other luxury housing projects. Rent control doesn't work
Check, check & check! All that is already happening in CA! Problem is they are building tons of condos, track homes, and apartment buildings but they are selling at market rate ($500k median) or renting at top of the market. Only a small percentage of these units have to be designated for low income individuals. However, someone making $40-65k/per year is not considered low income so they have to suck it up and pay high rents.
Good start. But not exactly helpful to all those struggling currently. It’s a tough sell to all the people getting evicted, struggling, and living on the streets to tell them “oh don’t worry MOST it will go up is 5%”.
Wait so teachers, waitresses, janitors and anyone else who isn’t a wealthy enough person to own more then one piece of property aren’t productive? You got solid logic there
Good intention but failed policy once again. Until we put competent people in office, government will keep failing like this. 5%+inflation increase per year? How many employers give 5%+inflation to the salary they pay out to every person? This doesn't solve jack. If they want a simple math rule, then base it on minimum wage. You cannot charge rent that is over 30% of the minimum wage. It's unethical for me to buy houses, then rent it out, expecting the renter to pay off my mortgage, so I get a free house and exploit other people's financial illiteracy. It's evil. It's greedy. It's the #1 reason why the housing prices keep rising when salary doesn't.
We have a rent control cap in British Columbia, Canada of 2.5 % per year. There is no additional amount allowed for inflation. The vacancy rate is still very low.
The problem is the insane Zoning laws in the US that prevent to supply of housing from matching the demand. Especially Height restrictions and Parking Requirements.
I'm glad here in Toronto that rents are basically capped at inflation - which is 2%. Housing supply is low because of mass immigration and building restrictions that impede supply. It's no longer affordable for the average wage earner to live in major cities.
I am a landlord in Ontario Canada and we have a maximum rent increase of 2.5% Per year while a tenant is living in the unit Oh man California is looking very attractive
CA has some of the lowest house taxes in the country. How much lower than 1% can you go? If anything it's the low taxes that have increased the house prices, which have in turn increased rent prices.
We should not be cheering for a 5% cap increase. First, it gives yet one more reason why investment should not be made into California - a state in which is suffering from a severe housing shortage. The 5% law shouldn't be necessary in the first place if California would to what it is supposed to do, which is to alleviate the the difficultly and cost with housing production. Also, note to the WSJ, can you please invite an actual economist to speak so we may be better enlightened on the subject matter, as I know most would probably contest what was discussed in the video.
Rent regulation increases inflation in something called 'inertial inflation'. Because the increase is limited, the assumption is that price has to increase. Typcally either the economy is booming or busting. If it's booming you have higher inflation, if its busting, you have lower inflation. The problem with inertial inflation is during the bust you maintaing high inflation. This causes a long recession because the economy cannot stabilize. Think 2009, but milder only with a longer duration. It doesnt sound as bad, but its actually worst.
Rent control IS one of the reasons for High rents! This fellow is lying through his sweet lips! Paradise is about to come from these people and all we get is The Very Rich and the homeless!
Combatant Analysis . How much about economics do you know? Do you know about the New York in the 1940's rent control numbers? I was in SF when they passed rent control, because of very high inflation in the 1970's. I am in the same Apartment building, Almost 50 years! Have you had a similar experience?
Margaret Burgess Zbikowski Normally an increase of demand led to an increase in price followed by an increase in supply,this stabilise price. I will argue over market equilibrium. In San Francisco you have to be well connected and go through a lot of red tape to build residences or houses . This intervention of the state lower the supply, with an increasing demand price naturally rise otherwise their will be shortage . When the state provides “housing “ the contractors manage through lobbying and “others favour “ to do the least and be paid the most but mostly avoid competition. When you implement price control in certain extent you disincentive the construction of real state . In my humble opinion if the state took action it will be a lot more better if they provide at loan of 1.5 % to pe repaid in 30% and tax deductible than implement price control or or constructing insufficient residence that people don’t necessarily like
My rent in Orlando, FL has gone up about 10% a year for the past three years now. Sucks because when you stay somewhere it doesn’t get refreshed or repaired like it would if you moved out, the quality of life has decreased steadily and rent just keeps going up.
30%? Are you crazy? That number only works if you have a two income household. Any single person with a decent career (making around 50k a year) will be spending about 50% of their income for a house or apartment.
For a long time in our country's history it was the 1/4th rule, then it turned into the 1/3rd or 33% rule. It's very important to know the 1/3rd rule or you will not be able to retire when the time comes and bad things will happen to you. The idea with the 1/3rd rule is 33% goes into retirement, like a 401k, 1/3rd post taxes goes to rent, and the remaining 1/3rd goes to utilities, car payments, eating out, vacationing, visiting friends, and anything else you want. The reason the 1/3rd rule exists is because if you don't save 1/3rd of your income into retirement (or more) you will get boned. There is an epidemic right now of people committing suicide in their 50s, because they didn't follow this rule. They're now realizing it's too late and many all over the country are offing themselves. It's sad. Learn from the mistakes of those around you. Put 1/3rd into retirement.
5% + inflation, supposed to "curb the worst excesses"...and rent hikes. But such a high cap will make landlords stretch to that number. No wage increase will keep up with that.
@@aligonzalez3115 Rent control causes the supply of spaces available for rent to decrease (as it is no longer as profitable to rent out spaces), the quality of those spaces to deteroriate (as rent control causes demand to exceed supply, so there will always be enough demand no matter how moldy and cockroach infested the rooms are) and disincentivizes builders from creating new housing for rent because they will not be able to get a reasonable return on their investment. You should not be for rent control, especially if you are a landlord!
@@modestxmichelle Rent control causes the supply of housing available for rent to decrease and thus causes more people to be out of houses!!! Gosh!!! Please look fully into topics before having an 'opinion' based purely on morality and not at all on rationality. The right choice is one that factors in both morality and rationality. I used to think just like you before I looked at the data. Please educate yourself!
@@modestxmichelle Arguments made purely on the basis of morality led to the formation of the Soviet Union, arguably the most immoral society that has ever existed!
During the pandemic , landlords didn’t lower their prices even though demand was low because they can’t go back and raise it when everything gets back to normal . This takes supply and demand out of the equation.
Real Estate agent in CA here. Rent control is not the solution for the housing crisis. It’s making the situation worse for the many long term tenants because the landlords are kicking them out to raise the rent and there’ll be much more restricting rent contracts going forward for the tenants so the landlords can make reasons to kick them out.
There are already many regulations deterring new housing in those locations! Generally, only more expensive development are what's taking place and little housing for the 'average' person is being built This might just backfire, like much of the other progressive programs that have implemented. It might get even harder to find a place to rent. People are mostly naive/ignorant. They don't seem to understand that all this regulation, props prices up, playing into the hands of the rich, the large landlords/developers, and lining the pockets of politicians. The 'sheep' just get fooled, thinking this is helping them ...
4:08 why should there be an exception? People want to buy homes, they just can't afford it because rich people are gobbling it all up. Renting your home should just be a supplement if you live in a large house and have extra space, not an investment opportunity.
curious to see how this will effect the diversity of tenants living in California, landlords will now have a higher incentive to only pick the lowest risk/hassle tenants they can find, and also curious about the renovation rates, since they'll always find a tenant to live in a deteriorating house.
Tax them for empty rent housing. So if they are trying find someone who are willing to overpay they have to pay while they do so. They can accept offers or pay for being greedy
Not true. Rent control is an American thing. Theres no need for price ceiling when most developed countries don't have ridiculous zoning laws that artificially limit the demand and push the price up. In developed world people are not afraid of mixed used walkable neighborhoods and investing in a public transport.
Dufffaaa93 It’s not zoning laws that are the problem. It’s demand everybody wants to move to city’s and landlords of course see away to profit so even if more is being built the rent still goes up. It got so bad that in Berlin there was a emergency measure but into place that made it impossible to increase rent for 5 years.( Its being challenged heavily so at whatever time your reading this it might not be in effect anymore) Although greedy landlords(and not small owners but companies that own thousands of apartments, which gives them huge power) are responsible. Some bad bureaucracy also slowed construction but only partly having only small regional affect.
Not the solution. Simply favor construction, not rent control which will not favor construction. It is going to have the exact opposite effect of what it intended to.
Banning rent increase is like banning rising blood pressure. The solution is housing deregulation which will lead to more supply and lower housing prices.
what about the laws that prohibit apartment blocks? The main reason rents is going up is that demand is outstripping supply. The laws that restrict renting via zoning and that restrict high rises are the main reason the housing supply is limited.
This is nothing more than government trying to 'fix' a problem they created by exerting themselves more into the market they should just get out of.
Californian Democrats block any changes in zoning laws. Current ones benefit them, the same way rent control benefit only people who already live there, not the people who will want to move in in the future
Yeah, i think the title for the video is very fitting. The girl be like "if cali could do it and it works out, it can lead to other states doing it" god no
This makes sense thanks !
But people don't want LA to turn into New York
@@NZH00 most of the high rises in NY aren't apartments. There are two main reasons LA and the like don't want high rises: more traffic and a decreased real estate cost. The first is more understandable, infrastructure costs is a real issue and traffic is already famously bad. The second is nothing but cronyism.
Cost of living and inflation keeps going up, while wages stagnated. That is how the middle class diminishes.
I would like Americans to know about affordable housing in Russia and in General what life looks like in Russia, therefore, we can understand that in Russia everything is not so bad as the opponents of Russia declare with the help of propaganda! If it will be interesting to know something about Russia, here is more information I live in the provincial city of Perm: ua-cam.com/video/JbGhEoPwx0w/v-deo.html today in the labor market, the salary we have is this: perm.hh.ru and perm.zarplata.ru/vacancy/yandex ($300 part-time or light work, and up to $ 2,000 full-time, or business trips) the prices of products in stores: semya.ru/sale/vremya-nizkikh-tsen/ another retailer: edadeal.ru/perm/offers The rate of $ 1=64 rubles, but because of the parity of the purchasing power of the ruble, $ 100 in Russia (for of small taxes, low cost of energy resources, Russia's own raw materials, etc.) is not the same as $ 100 in the United States (for example, the defense budget of Russia is $ 50 billion, and the Pentagon budget is $ 730 billion, but in total about $ 120-150 billion is spent on the purchase of equipment and maintenance of the Russian army in rubles and how much the Pentagon spends on the same amount of procurement and maintenance of the army, so it is wrong to consider the ruble to the dollar in this case)! So is built and evolves Russia-schools, hospitals, are opening production (information is updated every 24 hours): sdelanounas.ru/blogs/ Secondary education for free, higher education free, if you type a certain evaluation under the end schools (such students majority), and if paid, then have us will from 800 until 1,200$ in year. Medicine is free under the insurance policy (the policy can be obtained once and for life, even if you currently do not work anywhere, the policy is still always valid!), but there are also paid clinics, for example vision correction from 300$ Prices for eye surgery services: perm.3z.ru/price/ dentistry-to put an implant (I recently did myself) the implant itself with the operation costs from 300$ + from 300$ the crown itself on it. The prices for dental: prodoctorov.ru/perm/uslugi/stomatologiya/ Every year, hospitals are built all over the country. In just one year 2019 many hospitals were built across Russia: sdelanounas.ru/blogs/129131/ The price of cars in our city: www.avito.ru/perm/avtomobili/inomarki?radius=200 the price of houses: www.avito.ru/perm/doma_dachi_kottedzhi/prodam/kirpich?cd=1 apartments: www.avito.ru/perm/kvartiry/prodam?f=578_70b0.549_5697-5698-5699 (Rent a simple apartment 180-250$: www.avito.ru/perm/kvartiry/sdam?pmax=16000&pmin=12000&f=550_5703-5704 more than 400$: www.avito.ru/perm/kvartiry/sdam?pmin=25000&f=550_5705-5706 ), For information here are our Russian girls, can anyone want to get acquainted and start communicating the popular Russian network "Vkontakte": vk.com/album-64279904_186139394 and vk.com/albums-64279904 there are many registered Europeans and Americans. So that not everything is as bad as they say about Russia in the Western media!
Taxes, as one of the lowest in Europe, for example for their real estate (7 hectares of land with buildings), I pay $ 1,700 a year, and for example for car (Volkswagen Touareg 245 HP) $ 220 a year, and insurance on the car (given my experience) is $ 170 a year. Mortgage loan for real estate from 7% per annum for up to 30 years (at the government level, recently considered the question that the banks of Russia will plan a significant reduction in the mortgage rate over the next three years), you can take a consumer loan of up to 100 thousand $ for up to 5 years and build your own house of brick and concrete, and not from plywood and insulation, as in the United States for $300 thousand! You can buy a ready-made business, here are the options in our city: www.avito.ru/perm/gotoviy_biznes
Here is how the famous American MMA fighter tells about Russia Jeff Monson who moved to Russia some years ago described (how was he received in Russia) and last year received the Russian passport - (interview in English: ua-cam.com/video/CC9-oo0o3ZM/v-deo.html )
On two countries lives American boxer Roy Jones, too, received Russian passport (he summer 2019 opened world championship on Boxing in city of Yekaterinburg - 250 miles from my town: ua-cam.com/video/pIdsOxNkR3I/v-deo.html ): ua-cam.com/video/oyTBTw7SQa8/v-deo.html
American the actor Steven Seagal so same received Russian passport: ua-cam.com/video/cImFfIE2p10/v-deo.html
Here is the UA-cam Channel of American Justas Walker who lives in Russia for more than 20 years and speaks Russian without an accent. A few years ago, he bought 100 hectares of land in the Altai mountains (250 acres in American) and is engaged in farming and cheese production: ua-cam.com/video/_UyyDapvyDc/v-deo.html
Here is another American Tim Kirby who has been living in Russia for many years and is engaged in journalism, also speaks Russian well: ua-cam.com/users/results?search_query=тим+кирби
And here is an American who moved to Russia, opened his hairdresser and does not know Russian at all: ua-cam.com/video/ra_iHaVlG0U/v-deo.html and ua-cam.com/video/dD1MoSsaCsw/v-deo.html
Wages have increased 13% since the 1980s while total compensation has increased 45%. The middle class is shrinking because everyone is getting wealthier. (Data from US Census)
@Jesus Christ I wonder about that... Have housing prices really changed that much when you account for how far interest rates have fallen?
Whether we see it or not, government intervention and the expansion of gov has made everyone poorer
@Jesus Christ I agree.
A lot of us are alone, stuck in unemployment/minimum wage, and some health problems.
And yet, we're supposed to just "stop complaining?"
Those who are privileged wouldn't understand.
One of my former colleagues only cleared $350/month in his paycheck.
Unless you have supportive, non-dysfunctional friends and family (Lol), you can't live on that.
5% ?? well that assumes everyone in the city is getting 5% annual raises , and most arent .. Most companies give 2-3% raises meaning people are still getting poorer by the day
Another problem driving high rents are local property taxes and fees on homeowners and businesses. They are extremely high in some cities and these costs are being passed along to consumers. Some homeowners in the Chicago area are paying $15k and $25k per year. I imagine businesses pay even more.
That's why everyone's going homeless
This avoid atleast some evictions and rent increase beyond 10% which isn't unusual in San Francisco and other cities in Los Angeles
The problem with everyone getting a raise is it will create inflation.
That doesn’t even include inflation with the money printing the Fed is doing. Meaning rent goes up by 5% and so does the cost of buying groceries and other Living expenses not just Housing
More laws isn't the solution. Building more housing to supply the demand lowers cost of rent.
Sounds like the free market at its best. Commifornia should look at zoning deregulation first, then let the free market play out. No one is forcing these tenants to live in the country's worst state.
You obviously didn’t pay attention during the housing bubble pop
Lol
@@c87kim The housing crisis wasn't caused by building houses to match demand, rather by lenders issuing subprime mortgages to unqualified borrowers. You are correct though that more laws/regulation would have stopped these NINJA loans from happening in the first place.
Where are you going to build them though? LA is already extremely sprawling and you can't build new houses without forcing people to drive 2 hours to work
@@NZH00 If no more room to build then people will move elsewhere if they can't afford to live in LA. No one is forcing tenants to live in LA or drive two hours to work. When rent prices go up, people move away, and the free market will provide as it has for quite some time.
As a Californian its not working and the middleclass is leaving congrats
Uhhhh California is completely unaffordable when it comes to rent
Capitalism
@@Itz_tony0_0 Housing is one of the most regulated markets though. Zoning laws play a big part.
@@Itz_tony0_0 You mean government intervention
why most millennials and gen z choose to live the van life
California is where rich people live like nyc it’s where most of the big businesses are apple, entertainment like record labels, movies, and tv productions.
"If California can do it, and it actually works out.."
"and if it actually works out.."
BOLD ASSUMPTION THERE GIRLY
Axel Black my thoughts exactly 🤣🤣
My landlord raised rent by 300 in a year . we have been in the same place for 14 years. He fixes nothing nor has he painted . We have the original carpet from before we moved in .
Katrina savage: Blessings for 2020 giving you relief.
At least it’s not San Jose! My lease ended and our landlord raised the rent $1700. We didn’t even have working heat 😂 Good thing we were all graduating seniors but still insane for the next tenant.
I hope you are able to get your landlord to make repairs! r/legaladvice on reddit is good if you need done people to point you at city codes or sources!
You should have signed a lease.
Move?
And people say those poor landlords and their ever burdensome maintenance costs. What maintenance?
Wow they act like they're proud of that 5% cap every year.
Haha 5% plus inflation. So 7%. This is going to work great...
Chase McAllister Exactly.
Yep. It's truly nonsensical.
Well if that's the case they WILL do it now. They have a incentive so they have to keep up. This will be bad
Landlord: Thank you America
Is this annually?
If landlords can't raise rents then more of them will begin Airbnbing their properties.
Their policies never actually help the people they pretend to target.
This is a huge problem in tourist areas like lake tahoe.
The landlords can already rent their properties out to AirBNB, however, it always doesn't mean to bring in more $ - trust me, landlord here
Many cities are cracking down on the short-term rental market now.
@@1313aves No, cities regulate private property. Most cities prohibit you from building a 500 foot tall wall surrounding your property, or running a gambling ring out of your basement, or renting your home without adequate heat and water, or turning your basement into a rental without a certain ceiling height, ventilation, or flood protection. The list of things you can't do with your private property is pretty long actually.
These laws are pretty ineffective
My rent has been going up 5-10% each year.
Tecpaocelotl Castillo if I were you I will compare the cost of taking a loan at 2.8% to be paid in 30 years vs the price of rent
Bro. Are you still teaching náhuatl ?
@@evaristegalois8600 true. Fixed rate mortgages are state subsidised, and rent isn't
@@evaristegalois8600 in theory it would work, but it's usually about $3,000 per month. I can get something cheaper if I'm willing to drive about 2 hours one way to work and 2 hours back and that's not counting the traffic.
@@saulbravo3485 I haven't done Nahuatl classes in a while, but I do have a Nahuatl group on Facebook.
facebook.com/groups/nawahtlatolli
CA voted against Rent Control, yet our governor is forcing it down our throats. Economists are nearly unified in agreement that rent control does not work. This is simply a tactic of buying votes. Rent control increases market rents above what they would be without it. Hence why developers love it, since it brings up the value of new buildings not subject to it (for 15 years). What we need to do is build more housing.
Yup law of supply an demand . Because government already makes building cost so much and if rent control is passed than the supply is low (no competition) and demand will still be high meaning they can continue to charge high prices.
If californians never evict democrats...
Just the way that guy was talking.
Tou Yang you 5 years old bro ?
@@GG1783 No, but I felt like it after hearing this guy!
Unless you set salary increase at 5% minimum a year, how will this actual help when salary isn’t increasing at 5%?
salaries are not increasing probably because you are not growing. The onus is on you to try to get more skills and get a better job or ask for a raise. You need to keep looking around. Don't end up staying at one place for 20 years.
@@rockwithyou2006 you keep replying to everyone who mentions wages not increasing like you know what they make lol your statement to everyone still doesn't change what this guy and many others have said about stagnant wages
@@FunnieApple your salary is what you exactly deserve. u can always ask for more or move jobs.
@@rockwithyou2006 no you can't dude. Some people are disadvantaged in various ways, and most employers don't want to pay their workers. Or are you seriously going to deny those things because your personal experience is that you've pulled yourself from your own boot straps and worked hard? "I'm not lucky or privileged, I just work more harder than you!" Is a trite and naive opinion. If you honestly believe that employers play no part in increasing wages than you're a fool.
1. Don't live in Cali
2. When you move out don't vote for the same policies that made you leave
Joey A. Yes!! California is a virus of humans
"policies that made you leave" financial success? Housing costs are cheap in places that are poorer. This is true in literally every single nation on earth
I’m interested to see how this will play out on the state level. It should stay like that, state by state decision. A federal law capping rent increase should never come
I can already tell you: it's not going to work. Price controls NEVER work
@@AdamSmith-gs2dv This is not classic price control. 5% on top of inflation yields an *inflation* *adjusted* real increase of 165% after 20 years. Its purpose is to control flagrant gouging. This is why it doesn't apply to more than 80% of rentals in hot markets.
The law was created to ban the practice of landlords offering a low rent, then landlords taking advantage and cranking up the rent often 20%+ and hope the tenant stays. This law restricts that sort of behavior, but only mildly. Instead of it happening in one year, it happens in three years.
imho 3% + inflation would have been fair. A 7% yearly increase almost defeats the point.
I’m in Atlanta and it’s beginning to become unaffordable here too. Wages stay the same, rent going up
If you stay the same, your wages will stay the same too.
5% + inflation is NOT even remotely reasonable for renters! This is just PR to attempt to make the rent ceiling strategy seem fair and balanced, but do the math if you’re a renter and already paying more than 30% of your monthly income, it doesn’t hold up at all. This is the attempt to cosmetically make it look like municipal governments are considerate of the affordability for ALL of their constituents, INCLUDING renters, but in reality, housing is STILL unaffordable for more and more renters and exacerbates the potential for homelessness. Where on earth did you think our homeless crisis came from to begin with!!
This is allready law in Vancouver, british columbia but if your tenant leaves your alowed to do renovations and jack up the rent again. Moral of the story is theres allways a way around the game and the rich will continue to play the game . Coffin apartments (like Hong kong) coming to a city near you.
Disillusioned comments. HK doesn't have land to grow whereas Canada has plenty of space to build and grow hence no fear of small living areas
@@alexanderh.999 hk has no spare lands ？ Go figure it out. Say thanks to capitalism and free market
wan Your point is?? Learn to write ok
@@alexanderh.999 you didn't even go to figure it out so just believe in your false mindset
@@1queijocas oh yeah you genius .. Wait wait wait wait did you just tell me that I didn't know what I was talking about ？？wow wow wow. Ok. A small fraction of what you said did make sense which is the new construction does be blocked by sb. But is it the hk government？you think the government really has a say on that ？ Come on capitalism there dude, especially a place with enormous wealth gap, those property developers would let new communities appear ？you are not informed
And this is why... " I LIVE IN A VAN .... DOWN BY THE RIVER "
XD
nice lots of millennials are planning on that.
van life for life > rent for life
@@Koushi82 ... making a reference to a 90s SNL skit, but okay
5% + inflation rate/ PER YEAR....every year? That's still gouging residents.
It's fair. If you go lower than that, then you aren't being fair to the landlords too. These cities are expensive to live in anyway, if it's not rent putting a hole through your wallet, it will be something else, like high taxes. The better answer is to just move somewhere else, stop wanting to absolutely live in an expensive city just because you think it's a "beautiful and fun" place to live in. We have to adapt and seek new places.
@@Lexman00 I honestly hate this mindset. You bring no solutions to the table. This will happen statewide and it will get to the point were a heavy majority of the people will become homeless.
@@Hoi-art Rent increase is in direct relation to overhead costs for landlords. As the value of a home increases for example so does the cost of maintaining that home (tax increase, insurance, maintenance). As a landlord I lose money every year I don't increase rent. I have properties where I lose $500 or more per month fully rented. I have to increase rent or sale that property to not lose money every month. Of course there are bad landlords out there but it's not all of them.
No it's not. It depends entirely on the balance of supply and demand in the area. 8% rent increases in some areas could be so low that it causes shortages.
@@kingbrend222 I understand that but you can't make money when the minimum wage refuses to go up, It's physically impossible to profit off of the poor and systematically keep them poor. The solution is to up the wage at a MAXIMUM wage to keep up cost so the individual wins, not lose.
So are they going to cap property taxes for these rentals? Plus insurance costs? If not the rental pool will shrink.
crashweaverda another idiot mad
About taxes he thinks he pays and no one else does and doesn’t even realize they benefit no one it’s government
It will certainly be interesting to see if apartment landlords will be able to pay their own bills.
California property is already capped at 1% of assessed value and 2% yearly increase. The 5% + inflation cap is actually very generous to the landlords en.wikipedia.org/wiki/1978_California_Proposition_13?wprov=sfti1
It's been like that in CA for a long time now. Property tax caps have given the average middle upper class and upper class some of the lowest taxes in the country and it's hurt our roads and schools because of it.
@@razzlfraz Its it on the 2020 ballot to repeal?
It’s seems an impossibility that any tenant could keep pace with any rent increase greater than the cost of living increases.
So they leave and move somewhere more affordable and someone who can afford the rent takes their place. Life goes on.
James Russell
Very few jobs have salaries that increase greater than the cost of living on an annual basis year over year. Eventually you would price yourself out of renters.
@@savagecub Eventually, parhaps, but clearly not yet if people still keep renting. And even if the landlords did reach that point where there were no more buyers all they would need to do is adjust slightly.
@@savagecub if your rent has become unaffordable, it means people living around you have started making more than you. Its really that simple. Landlords cannot charge arbitrary rents, they also need renters. They don't enjoy finding a new tenant. One month of vacant house can cost 2300$ to the land lord in a place like bay area.
@@108nighthawk also quit their job as it doesn't pay enough for rent.
then we get Detriot and life moves on until businesses pay enough for rent and housing costs.
Yes!! Let’s make this happen in Minneapolis, MN!
Rent is "suppose" to be regulated by the consumer price index, but nobody follows that. They just jack it up every time the lease is up...
As a landlord, I don't support the California law, BUT, overall it's not that bad. It just means tenants won't see any major improvements in their buildings while they live there and you may see fewer perpetual rent contracts.
Riverside is in Southern California, not next to Sacramento. lol
Yeah I noticed. They also mentioned how LA is more expensive than SF. That ain’t true cause I lived in LA first and then SF. SF was way more expensive than LA
Umm. No, SF is more expansive than LA. Trust me I’ve lived in both locations. Currently left CA for AZ.
They will do 5% raise every year now or else they will lose money. This will be bad in the long run. They need to do by fair market share or have housing zone limits.
Except California's taxation model is entirely unsustainable and California's utopian vision will fall apart in 10-30 years.
Here is a solution that nobody is talking about. Don’t allow out of country investors to buy properties in a city that they will never occupy. Case in point Vancouver, Canada, rents having increased tenfold over the past 10 years because all these rich Chinese people come in and buy up all the housing stock just to park their money overseas in a country they never live in. Also, cut regulations to make it cheaper to build houses! Or incentivize different types of housing like 3-D printed houses, tiny homes, fast fabricated homes. Also, get rid of the not in my backyard laws that prevent developers from going into neighborhoods and building multi families to drive prices down. Those are the people that have been driving up housing costs because they don’t want to live next to poor people.
We live in modern America, if you’re not earning a six figure salary or are a multimillionaire/billionaire, you might as well be on food stamps.
Then dont live in a big city, problem solved
I don't make 6 figures and am able to save money and have no debt. Truth is most Americans live above their means and prefer to shop instead of save
@@TigerAskari_ that's where all the jobs are I lived in small town Ohio not very many jobs are available because they are taken up by baby boomers and generation x if your any younger they will make you work 2nd shifts you can not choose and they will only hire you as a temporary worker there is no future for millenials in the workforce that's why most of us are moving to bigger cities and using jobs as assets to become entrepreneurs.
@@KennyakaTI saving takes time especially when most companies pay their employees biweekly to fit their budget cost you literally have to have multiple streams of income in order to move up in life or you can just live comfortably with budgeting on what you can afford.
@@KennyakaTI what kind of work do you do? I work in behavior analysis so i have the liberty to work almost anywhere
The US Census reported that NY lost 76,000 people. This is the 4th year in a row that this has occurred. Meanwhile, rent is still rising. Theyre building like 15 new buildings all across the Bronx yet no one is moving in. They also refuse to lower the price to rent. I cant wait to see how this plays out
opportunity for Airbnb .
Wrong, and you need to return the the middle east where you belong
I wrote my bachelor thesis about rent control in Berlin. It was introduced by Hitler in 1936 but lasted several decades even after WW2 ended and was hardly abolished due to public resistance. I found out that rent control made more houses uninhabitable than the bombing in WW2.
Source?
@@tehepicduck101 HiS bAcHeLoR tHeSiS.
We just need minimum wage to keep up with inflation. This constant debate of "when should we raise wages" kills more than housing prices.
No idiot ... raising minimum wages kills small businesses and job opportunities...
@@nam5do Right now we lower the minimum wage every year by inflation. Business that doesn't break 5% net profits is a dead buisiness that burdens my tax dollars. No one wants to work for free, lowering minimum wage lowers GDP of a nation, and lowers the bar for your pay as a citizen.
@@phillipotey9736 check out how the $15 minimum wage is destroying small business in Seattle and New York City.
@@ndo5366 It depends on what you think small businesses should be. Should the owners be a happy middle class mom and pop who barely scrape by paying low wages; in this competitive market. Or a buisiness savvy owner who is aggressively trying to grow a business and change the world.
I do agree many restaurants and common dream businesses are closing, but the ones who want to compete are doing fine. Unfortunately if you're not up to compete you're not a capitalist.
I would like to hear your thoughts.
Won’t work at this point, it will just devalue our money more than it already is; we will have the same as we’ve had before. Now statewide minimum wage hikes for states that have extremely high living cost could see Benefit. Most jobs pay 10+ in our Midwest states which is a liveable wage if budgeted correctly.
5% a year is still too much. If wages continue to remain stagnant and the cost of everything goes up every year there becomes a breaking point where people just have to put on yellow vests and occupy the streets.
Dawa J wages surpassed inflation for the first time in decades this year? Wages are growing, however housing and utilities are rising quicker. Thus, the reason for this video. May be small, but an important distinction.
Wow when we raise the minimum wage so high everything else goes up? Like tax? And goods?
WHO WOULD HAVE GUESSED
The rents are high, we don’t need a 5% increase cap, we need a decrease on the rent total. We need a wage that keeps above inflation or on par and match our wage to current year.
Artificial minimum wage is not needed if government stops price gauging of rent all together. Price of rent is like price of tuition. The more money you have, they higher they'll hike the price. Increasing minimum wage won't solve anything if the price of everything is allowed to rise.
@@alexfrank5331 Then they need to control land prices
Commie
blightmoon Your comment shall be taken for the state
The audio is so bad. Who got this job? Y’all hiring?
Imma be honest I thought i was the only one it sounds like Frye tones and knives in my ear
I thought it was just fine...
Why not cost control on everything else ? Cost of cars ...cost of food ...cost of drugs ...cost of gas .etc etc ..
Rent control just incentives landlords to raise rents every year now in order to keep up with growth. The solution is too allow for higher density developement.
Some ideas to make housing affordable:
1. Lax the zoning laws
2. Convert golf course and cemeteries into housing development
3. Issue more house permits making it easier to build housing units
4. Build more mass housing units and fewer mansions and other luxury housing projects.
Rent control doesn't work
Check, check & check! All that is already happening in CA! Problem is they are building tons of condos, track homes, and apartment buildings but they are selling at market rate ($500k median) or renting at top of the market. Only a small percentage of these units have to be designated for low income individuals. However, someone making $40-65k/per year is not considered low income so they have to suck it up and pay high rents.
Good start. But not exactly helpful to all those struggling currently. It’s a tough sell to all the people getting evicted, struggling, and living on the streets to tell them “oh don’t worry MOST it will go up is 5%”.
CALIFORNIA NEEDS MORE HOUSING, not rent control. Rent wouldn’t be extremely high if there were an ample amount of places to rent
Fastest way to drive away productive people out of the state. Why favor the tenant over the landlord who actually owns the property.
Landlords are the productive ones?
"So you will need a yearly 5 % increase in your wages to keep up ... and that's that dada"
@@TheRogueRockhound they own the property so yes. They most likely own other properties and businesses.
Wait so teachers, waitresses, janitors and anyone else who isn’t a wealthy enough person to own more then one piece of property aren’t productive? You got solid logic there
Renters out number landlords, more votes for the glorious revolutionary humanist socialist people's Party, comrades.
Good intention but failed policy once again. Until we put competent people in office, government will keep failing like this. 5%+inflation increase per year? How many employers give 5%+inflation to the salary they pay out to every person? This doesn't solve jack. If they want a simple math rule, then base it on minimum wage. You cannot charge rent that is over 30% of the minimum wage. It's unethical for me to buy houses, then rent it out, expecting the renter to pay off my mortgage, so I get a free house and exploit other people's financial illiteracy. It's evil. It's greedy. It's the #1 reason why the housing prices keep rising when salary doesn't.
Its the Zoning Laws that restrict the building of new housing. Restrictions on high rises and parking lot requirements are especially damaging.
2%-3% would've been impressive. 🤷🏾♀️
We have a rent control cap in British Columbia, Canada of 2.5 % per year. There is no additional amount allowed for inflation. The vacancy rate is still very low.
economic growth in CA is far more than BC. Cannot compare. The rate at which people are moving to the bay area given the job opportunities
If you think rent control has zero negative implications, then please go take an economics course.
It will turn out kinda like the projects, the people already there won't move for a long time.
@@Lexman00 Leads to insurance fires.
The problem is the insane Zoning laws in the US that prevent to supply of housing from matching the demand. Especially Height restrictions and Parking Requirements.
I'm glad here in Toronto that rents are basically capped at inflation - which is 2%. Housing supply is low because of mass immigration and building restrictions that impede supply. It's no longer affordable for the average wage earner to live in major cities.
I am a landlord in Ontario Canada and we have a maximum rent increase of 2.5% Per year while a tenant is living in the unit
Oh man California is looking very attractive
Then move to Detroit. Plenty of affordable housing there.
I got assaulted when i visited
Detroit
Are there any good jobs there?
Nahh...it'll drive up demand
Their moving jobs up there
5% over inflation? Did i hear it right? Is the bill promoted by landlords or tenants?
Man, that Urban Institute guy is a such an up-talker.
Not all rentals are created equal. Luxury rentals are supposed to cost more because those are for higher income individuals.
Why not reduce taxes? Because California gov't wants even more power.
@@mmbyron Trust me, gov't power is the root cause of ALL of California's problems.
Naphtali
Research Proposition 13; part of the conservative tax revolt that limited the amount of property taxes that could be collected.
@@keirfarnum6811 Will do
CA has some of the lowest house taxes in the country. How much lower than 1% can you go? If anything it's the low taxes that have increased the house prices, which have in turn increased rent prices.
We should not be cheering for a 5% cap increase. First, it gives yet one more reason why investment should not be made into California - a state in which is suffering from a severe housing shortage. The 5% law shouldn't be necessary in the first place if California would to what it is supposed to do, which is to alleviate the the difficultly and cost with housing production. Also, note to the WSJ, can you please invite an actual economist to speak so we may be better enlightened on the subject matter, as I know most would probably contest what was discussed in the video.
Rent regulation increases inflation in something called 'inertial inflation'. Because the increase is limited, the assumption is that price has to increase. Typcally either the economy is booming or busting. If it's booming you have higher inflation, if its busting, you have lower inflation. The problem with inertial inflation is during the bust you maintaing high inflation. This causes a long recession because the economy cannot stabilize. Think 2009, but milder only with a longer duration. It doesnt sound as bad, but its actually worst.
This is pretty one sided. Really understates the criticism of rent regulation.
the solution is to build more homes!
To many NIMBY boomers who would rather their house price appreciate than give the newer generations a chance.
@@TheNeilDarby Well said.
The solution is to incentivize investors to build more homes by not enacting dumb rent control laws.
This is not working and we still have homeless people and rent is too high.2700 for a two bedroom is crazy !
Rent control IS one of the reasons for High rents! This fellow is lying through his sweet lips! Paradise is about to come from these people and all we get is The Very Rich and the homeless!
Combatant Analysis . How much about economics do you know? Do you know about the New York in the 1940's rent control numbers? I was in SF when they passed rent control, because of very high inflation in the 1970's. I am in the same Apartment building, Almost 50 years! Have you had a similar experience?
For those wondering what she means by "a out economics," it's basically the economics of New York and how it relates to cities such as San Francisco.
@Combatant Analysis if there is 5% limit each year i would max out that rate for "just in case".
Margaret Burgess Zbikowski
Normally an increase of demand led to an increase in price followed by an increase in supply,this stabilise price.
I will argue over market equilibrium.
In San Francisco you have to be well connected and go through a lot of red tape to build residences or houses .
This intervention of the state lower the supply, with an increasing demand price naturally rise otherwise their will be shortage . When the state provides “housing “ the contractors manage through lobbying and “others favour “ to do the least and be paid the most but mostly avoid competition.
When you implement price control in certain extent you disincentive the construction of real state .
In my humble opinion if the state took action it will be a lot more better if they provide at loan of 1.5 % to pe repaid in 30% and tax deductible than implement price control or or constructing insufficient residence that people don’t necessarily like
Price control =more Airbnb
SAN Francisco is a touristic city .....
My rent in Orlando, FL has gone up about 10% a year for the past three years now. Sucks because when you stay somewhere it doesn’t get refreshed or repaired like it would if you moved out, the quality of life has decreased steadily and rent just keeps going up.
30%? Are you crazy? That number only works if you have a two income household. Any single person with a decent career (making around 50k a year) will be spending about 50% of their income for a house or apartment.
For a long time in our country's history it was the 1/4th rule, then it turned into the 1/3rd or 33% rule. It's very important to know the 1/3rd rule or you will not be able to retire when the time comes and bad things will happen to you.
The idea with the 1/3rd rule is 33% goes into retirement, like a 401k, 1/3rd post taxes goes to rent, and the remaining 1/3rd goes to utilities, car payments, eating out, vacationing, visiting friends, and anything else you want.
The reason the 1/3rd rule exists is because if you don't save 1/3rd of your income into retirement (or more) you will get boned. There is an epidemic right now of people committing suicide in their 50s, because they didn't follow this rule. They're now realizing it's too late and many all over the country are offing themselves. It's sad. Learn from the mistakes of those around you. Put 1/3rd into retirement.
It's always been this way. If you spend 50% it's because you choose too
5% + inflation, supposed to "curb the worst excesses"...and rent hikes. But such a high cap will make landlords stretch to that number. No wage increase will keep up with that.
Housing cost should not increase more than 4% per year
in SF, the allowable rent increase is a lot lower than 5%. It goes anywhere from 0.5% to 2.5% (changes annually)
I can’t kick people out of my condo for not paying their rent. I need new tenants. It can be very difficult.
I’m for rent control to an extent but I just need to be able to kick out tenants for ruining my property and not paying rent
@@aligonzalez3115 Rent control causes the supply of spaces available for rent to decrease (as it is no longer as profitable to rent out spaces), the quality of those spaces to deteroriate (as rent control causes demand to exceed supply, so there will always be enough demand no matter how moldy and cockroach infested the rooms are) and disincentivizes builders from creating new housing for rent because they will not be able to get a reasonable return on their investment. You should not be for rent control, especially if you are a landlord!
@@wedeldylan so Americans don't deserve a place to live?
@@modestxmichelle Rent control causes the supply of housing available for rent to decrease and thus causes more people to be out of houses!!! Gosh!!! Please look fully into topics before having an 'opinion' based purely on morality and not at all on rationality. The right choice is one that factors in both morality and rationality. I used to think just like you before I looked at the data. Please educate yourself!
@@modestxmichelle Arguments made purely on the basis of morality led to the formation of the Soviet Union, arguably the most immoral society that has ever existed!
Unfortunately rents are already ridiculous so the cap on increases isn't going to help.
Let them do it, so that they can remind us why we ended it in the 70s.
How about just the rate of inflation?
I love how WSJ acts like this form of capitalism still works 😂
During the pandemic , landlords didn’t lower their prices even though demand was low because they can’t go back and raise it when everything gets back to normal . This takes supply and demand out of the equation.
If California has statewide rent control, how come the rent price is so much higher than literally any other states that doesn't have rent control?
most rent control decreases supply of apartments which can and often does lead to often increase rent
Real Estate agent in CA here. Rent control is not the solution for the housing crisis. It’s making the situation worse for the many long term tenants because the landlords are kicking them out to raise the rent and there’ll be much more restricting rent contracts going forward for the tenants so the landlords can make reasons to kick them out.
There are already many regulations deterring new housing in those locations! Generally, only more expensive development are what's taking place and little housing for the 'average' person is being built This might just backfire, like much of the other progressive programs that have implemented. It might get even harder to find a place to rent. People are mostly naive/ignorant. They don't seem to understand that all this regulation, props prices up, playing into the hands of the rich, the large landlords/developers, and lining the pockets of politicians. The 'sheep' just get fooled, thinking this is helping them ...
The lack of supply is going to keep prices rising. No bills from government are going to change that
*sounds like bringing a garden hose to a wild fire*
Wild fires 🔥 that’s so close to home.
Actually, more like pouring gasoline on the fire.
Do they realize that this will FORCE property owners to increase this amount every year in order to “keep up?!”
4:08 why should there be an exception? People want to buy homes, they just can't afford it because rich people are gobbling it all up. Renting your home should just be a supplement if you live in a large house and have extra space, not an investment opportunity.
I live in Ontario, Canada. Our rental increases are capped at inflation, but can be set at whatever for the unit when someone moves out.
Housing shortage here we come
curious to see how this will effect the diversity of tenants living in California, landlords will now have a higher incentive to only pick the lowest risk/hassle tenants they can find, and also curious about the renovation rates, since they'll always find a tenant to live in a deteriorating house.
Can't complain about lack of housing when you enact laws that limit supply.
Facts: these are Democrat states. It’s time you start questioning rich democrat policy makers.
Tax them for empty rent housing. So if they are trying find someone who are willing to overpay they have to pay while they do so. They can accept offers or pay for being greedy
Most developed countries: Have rent increase ceiling
America: An out of the box solution
Not true. Rent control is an American thing.
Theres no need for price ceiling when most developed countries don't have ridiculous zoning laws that artificially limit the demand and push the price up.
In developed world people are not afraid of mixed used walkable neighborhoods and investing in a public transport.
Dufffaaa93 It’s not a price limit but a limit on how much the rent can be increased every year.
Dufffaaa93 It’s not zoning laws that are the problem. It’s demand everybody wants to move to city’s and landlords of course see away to profit so even if more is being built the rent still goes up. It got so bad that in Berlin there was a emergency measure but into place that made it impossible to increase rent for 5 years.( Its being challenged heavily so at whatever time your reading this it might not be in effect anymore) Although greedy landlords(and not small owners but companies that own thousands of apartments, which gives them huge power) are responsible. Some bad bureaucracy also slowed construction but only partly having only small regional affect.
Nothing like fixing a rental shortage with laws to increase rental shortages.
Greed is what runs this country.
Not the solution. Simply favor construction, not rent control which will not favor construction. It is going to have the exact opposite effect of what it intended to.
raise rent but doesnt raise minimum wage what a joke
California’s minimum wage went up to 13 dollars an hour this new year. And will go up to 14 dollars an hour in 2021 and will continue to go up
Ever since regulations were introduced, prices went up. If you want them to go down, eliminate regulations. Basic economics.
5%+inflation rent increase cap is hardly a protection.
It is supposed to be a protection from demand shock
Banning rent increase is like banning rising blood pressure. The solution is housing deregulation which will lead to more supply and lower housing prices.
Why do we have landlords at all?
why do we have renters Duh
?
Developers are building lots and lots of expensive housing, but no one ever moves in. Honestly, won’t this cause a bubble?
How about making it easier for people to buy houses??
Financial Shinanigans we did that it’s called 2008/09 housing/mortgage meltdown Some people are just meant to rent their whole life
@@sterlingmarshel6299 YEP