National City sets rent control on mobile homes at 5%

[Dan H.]

The proposed new law requires a second reading before becoming law.  Maybe the politicians will demonstrate some intelligence and kill this ill advised law, but I suspect not.

My view is the politicians are stupid.  There is no association of rent cap with CPI.  Note if you raised rent 5% but CPI is 8%, in inflation adjusted dollars you are losing money by owning the mobile home.  What do you think the result will be?  I believe mobile home parks will get shutdown and redeveloped into a more profitable use of the land.  This would remove from the market perhaps the most affordable units.  It will result in less housing and less inexpensive housing.

I question the intelligence of the politicians.  I realize intelligence has never been a requirement to be a politician, but this is so easy to see the outcome.  

It is similar to when the board of supervisors passed the most stringent Covid eviction moratorium in the county.  I predicted it would result in crazy rent increases and it has.  New risk has to result in increased profit to counter the increased risk.  

The mobile home parks will close.  It will lead to many people living in those homes having to find new homes but there will be none at similar (artificially low) price point.  The tenants will provide their sob story for losing their home and they can thank the rent control policy that they advocated for (so they can only blame themselves).