In November of this year, when voters across the US decide who will be their next President, Californians will also vote on Proposition 33.
The proposed legislation, officially called The Justice for Renters Act, would repeal existing laws in California to allow rent controls to be expanded across the state.
What is Proposition 33?
If passed, Proposition 33 would remove California’s existing statewide restrictions on rent control, which proponents say would make apartments more affordable for lower and middle-income renters.
The Act, which is just 23 words, reads, “The state may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control.”
Who Supports Proposition 33
Currently, over 100 elected officials in California have voiced support for the rent control measures, including Congressmember’s Barbara Lee, Maxine Waters and Ro Khanna.
Meanwhile, Vermont Senator Bernie Sanders has endorsed the measure, as has UNITE HERE co-President Ada Briceno.
What Are California’s Current Rules on Rent Control?
Currently, California state law limits rent increases for tenants in corporate-owned single-family homes and apartments that are older than 15 years. This cap is 5% plus inflation.
State law prohibits local governments from putting rent controls on single-family homes and apartments built after 1995. In LA, the cut-off is even earlier.
Arguments For Rent Control
Rent control supporter Mark Paul wrote, “Researchers find that when rent control measures are undone, there has been no subsequent expansion of new housing.”
He added, “In Massachusetts, researchers have found that tenants in controlled units pay just half as much in rent as those in non-controlled units of similar size and quality.”
Who is Behind Proposition 33?
Proposition 33 is being sponsored by the AIDS Healthcare Foundation, an LA non-profit that also prioritizes issues of housing and planning reform.
The group led unsuccessful efforts to support rent control measures in 2018 and 2020. This time, they’re enjoying support from the Coalition for Economic Survival and Unite Here Local 11.
Who Opposes Proposition 33?
Proposition 33 has sparked strong opposition from many leading figures in the real estate industry.
The California Apartment Association is leading the opposition. The group has over 10,000 members and its executives include major apartment owner executives, such as Irvine Co.
Arguments Against Rent Control
Ryan Bourne, the Head of Public Policy at the Institute of Economic Affairs, says that, “in the 20th century, rent controls in Britain were associated with a collapse in the rental market from 90% of overall properties to just 10%. Introducing rent caps then would mean fewer people who want to rent would be able to.”
He added, “For landlords who continue to rent, the suppressed return means they are more willing to let properties fall into disrepair — worsening landlord-tenant relations.”
California’s Current Rent Situation
Almost everyone agrees that rent rates in California are sky-high – with more than 50% of tenant households in the Golden State paying over 30% of their income on rent and utilities.
Meanwhile, the Joint Center for Housing Studies at Harvard University says that over a quarter of tenants spend over half their income on housing.
What Do Californians Think?
On the sub-Reddit ‘California Politics’, locals debated the merits of Proposition 33. One Reddit user worried the proposition would “work in favor of monolithic landlords, pushing small time competitive landlords out of the market.”
Another opponent of the Proposition posted, “The housing problem in California is because of low supply. The solution is not, and never has been, to subsidize demand.” However, opposition was not universal, with one person saying the state needed to “invest heavily” in supporting rent controls.
