LOS ANGELES, CA / ACCESSWIRE / January 16, 2018 / NMS Properties, Inc.
Rent Control Continues to Divide Californians
A California law known as Costa Hawkins protects landlords from rent control by prohibiting local municipalities from mandating rental rates on single-family homes, apartments, and condominiums built after 1995. The law is now being challenged by public advocacy groups and a number of legislators who want to see it repealed in short order. Opponents of Costa Hawkins say the lack of rent control is making housing unaffordable for far too many state residents, Neil Shekhter points out.
According to Neil Shekhter, the issue of rent control continues to divide Californians. That division was on full display during a recent hearing on Assembly Bill 1506. The bill, authored by Santa Monica Democrat Richard Bloom, would overturn Costa Hawkins. Municipalities would then be free to enact rent controls as they see fit.
Assembly Bill 1506 was defeated by a 3-2 vote by the Community Development Committee on January 11. Proponents of the legislation say they will continue fighting to overturn Costa Hawkins. They plan to go directly to voters, possibly by way of a voter referendum, if they do not succeed in the California legislature.
Affordable Housing Is the Core Problem
Setting aside the political wrangling for just a minute, the core issue of Costa Hawkins and the opposition to it is the price of rental housing in California. Rental rates in the Golden State are far above the national average. For example, the national average for a two-bedroom apartment in the U.S. is $1,560. That same apartment goes for $2,550 in San Jose and more than $3,000 in Walnut Creek, says Neil Shekhter.
Advocates of overturning Costa Hawkins say that rent control must be allowed throughout California to prevent rental rates from going even higher. They say that without some form of rent control, landlords will continue to cater only to tenants with high enough incomes to support rental rates unaffordable to so many others.
Neil Shekhter explained, the opponents of rent control are not without their reasons, either. They contend that rent control creates artificial barriers that both reduce supply and artificially influence the market. They point to communities like San Francisco, where rent control laws put in place prior to Costa Hawkins have led to landlords getting out of the rental market altogether. Dwindling supply and fixed pricing has led to an even bigger affordable housing problem in the city.
There doesn't seem to be common ground on which the two sides can agree. Furthermore, the disagreement has become contentious at times. During the January 11 hearing, protesters rallied immediately following the vote by taking over the hearing room and chanting.
As long as rent control continues to be a contentious issue, California legislators can expect more of the same. The most unfortunate aspect of the whole thing is that California's renters are caught in the middle. Whether Costa Hawkins stays or goes probably won't change the high cost of living in the Golden State.
Neil Shekhter CEO of NMS Properties, understands co-living can be beneficial to any digital nomad new to the city, any young adult who has opted to move out his or her parents' home, or anyone else interested in sharing a space with others. Moreover, the co-living specialist knows living alone can make a single adult feel isolated and lonely. At NMS Properties, he can see how important finding compatible roommates and a suitable communal housing is to anyone interested in the latter-day concept of living in a commune or a co-op.
Launching NMS Properties in 1988, Neil Shekhter assumed the role of CEO in January 1995. The real estate management company focuses on multi-family and mixed-use properties in the Greater Los Angeles area and in Santa Monica. At present, NMS properties manages more than 70 properties.
Neil Shekhter - Founder and CEO of NMS Properties
Apartments For Rent In Los Angeles NMS Residential: http://www.nmsresidential.com
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SOURCE: NMS Properties, Inc.