What homeowners and investors need to know about Prop 10-
Prop 10: Repeals Costa Hawkins Rental Housing Act, which limits municipal rent-control ordinances. California suffers from a significant shortage of housing. In studies conducted by UC Berkeley, rental control has been shown to provide disincentives for new housing developments and also causes more units to become owner occupied which, in turn, reduces the number of units available for renters.
Prop 10 would make each city in California go through the process of passing new legislation before the repeal would have any effect.
California’s affordability crisis is a direct result of undersupply of housing. Addressing the underlying reasons for the high cost of housing would better serve Californians.
For a very thorough economic analysis on why this could possibly be the worst approach to California’s housing crisis, CLICK HERE.