Measure would drive landlords from market
Without Costa-Hawkins, many existing landlords, including seniors whose retirements hinge on their rental income, will face the burdens of extreme rent control and exit the rental housing business. Those who sell will likely lose equity, as rent control reduces values on affected properties by up to 20 percent.
Carlton said, “As an organization that represents rental property owners, CAA does not want to see a reduction in rental housing, but when rent control becomes too extreme, getting out of the business is an option that is chosen by some owners, and CAA will continue to defend that right.”
If extreme rent control is permitted, cities without rent control today are more likely to adopt the policy – and in its most radical form. Communities throughout California would face unworkable rent regulations like those imposed on San Francisco and Santa Monica in the 1980s.