Universal Rent Control? Cynthia Nixon has proposed it for NY!!

[Charlie MacPherson]

I try to avoid political discussions, as they never lead anywhere good in the business world - but this one strikes at the very heart of REI.

Former "Sex and the City" actress, Cynthia Nixon is running for Governor of New York.

One of the planks in her platform is UNIVERSAL RENT CONTROL - the implications of which are obvious - a stranglehold on rental property pricing in exchange for gaining tenant votes.

https://cynthiafornewyork.com/issue/rent-justice-f...

[Account Closed]

We have Prop 10 on the ballot and its scary. It repeals Costa Hawkins which currently prevents rent control on Single Family units as well as new construction apartments. It also explicitly allows rent control units to be brought to market rent upon vacancy. Repeal of that would leave cities able to pass any version of rent control they want. We own two homes that are rentals in California. If prop 10 passes I would probably either sell them to owner occupants or convert to short term or corporate rentals before cities like Berkeley and San Jose start passing ever more restrictive rent control. So that means two less rentals in an already tight market. And I'm sure I'm not the only landlord who will react that way. Rent control is a universally BAD idea because it helps no one except a group of existing tenants. It restricts availability and removes any incentive for landlords to invest in their property. And discourages new construction. It causes a spiral of reduced availability and even higher rent for the few available units and deterioration of the units under rent control.