rent_controlLarge scale economic events play out over many years and create the cyclical nature of our economy. The rapid increase in housing prices through the early 2000s caused people to purchase homes with little to no money down and adjustable rate mortgages with the belief they could refinance the loan as their home increased in value. What goes up, must come down, and we all lived through the ensuing housing market crash. As homes dramatically decreased in value, buyers in some areas of California could buy a home for less than what a new house could be constructed and if you’re coming from outside the state you can use services of interstate removalists to help you move into your new home. As a result, the creation of new housing became nearly nonexistent. Many areas of California are once again experiencing rapidly increasing housing prices, rental prices, and an expanding homeless population after years of very limited production of new housing. You can find affordable Rental Agencies Perth with acceptable and cost-effective prices for every need. The dramatic increase in rents influenced the introduction of Assembly Bill 2502 (Mullin), which as of this writing, would weaken the rent control limitations contained in the landmark “Costa–Hawkins” law sponsored by the California Association of REALTORS® in 1995. AB 2502 will undermine Costa–Hawkins protections by allowing local governments to impose mandatory inclusion zoning (i.e. rent control) on newly constructed rental housing, without any consideration for the economic viability of the project. Rent control is also being discussed by some local governments in the Sacramento Region. While California is facing problems in relation to rent prices, housing supply and homelessness, restricting the free market is not the answer. Governor Jerry Brown has placed in his 2016–2017 budget a “build by right” proposal which would allow for streamlined approval for affordable housing from Exempting projects already zoned and approved for housing if five to twenty percent of the newly constructed units are set aside for low–income residents. Another good proposal is the $1.3 billion proposed by the Assembly Housing and Community Development Committee to invest a portion of California’s budget surplus to address the state’s housing crisis. This money would be spent on local grants and tax credits aimed at building or updating lower–cost housing, including multi–family rental units, homes for farm workers, and unites with supportive services for homeless people. Innovative approaches such as these and those that you can view with a click here. This will help curb current housing issues, while not creating a disincentive to invest and build new housing. – Caylyn Wright, Government Affairs Director