For the AIDS Healthcare Foundation and other dogged supporters of extreme rent controls, the third time most definitely was not the charm in Tuesday’s election. The group backed Proposition 33, which would have overturned a 1995 law limiting local rent controls. It wouldn’t have imposed rent control per se, but would have allowed cities to have nearly unlimited power to impose vacancy controls and place rent limits on single-family homes and newer construction.
Although the final tally is not yet official, Proposition 33 lost by a wide margin, 61.5 percent to 38.5 percent. Even voters in progressive (and rent-control-friendly) San Francisco said no to this misguided measure, with voters there rejecting it by 18 percentage points. The measure was similar to two previous ones backed by the same group, in 2018 and 2020. Those measures lost by 19 points and 20 points respectively, so voters keep rejecting it by larger margins.
Making the defeat sweeter, voters also appear to have approved Proposition 34 by three percentage points. Rent-control backers termed that the “revenge initiative,” as it limited the ability of the healthcare group to spend proceeds from a federal prescription drug program on anything other than patient care. It was an attempt to cut off its funding sources for future measures.
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Enough already. California rents and property prices have reached absurd levels, but rent controls have only contributed to the problem. They discourage owners from investing in rental properties. They protect some renters, but by limiting supply they drive up rents overall. Argentina recently eliminated its strict rent controls and prices have fallen significantly as supply increased.
California will not reduce its housing foes by adding more regulations and restrictions. The state should continue creating “by right” approvals for housing construction, including apartments. Lawmakers need to rein in the California Environmental Quality Act (CEQA), which slows or stops proposed projects. It needs to reduce developer fees. These are all things within the power of the state to do if politicians stop cowering to special interests and put the people first.
Rent control is not only counterproductive, but now we see again that it’s a political dead end. Advocates should stop pushing failed ballot measures and embrace constructive approaches if they really want to help people.