How Will the New Rent Control Law Impact SoCal Apartment Investment?

David Harrington

The State of California has officially passed AB1482, a new rent control bill that will cap annual apartment rent increases at 5%. With the housing crisis roaring on and rents continuing to increase, few are surprised that the bill passed.

“As soon as New York passed their Housing Stability and Tenant Protection Act in June of this year, I knew it was a foregone conclusion that California would follow through with this bill that was already in motion,” David Harrington, EVP at national director of multifamily at Matthews Real Estate Investment Services, tells GlobeSt.com. “After the sound defeat of Proposition 10 last year, I am disappointed in AB 1482 to say the least. It is my very humble belief that we should live in a free market economy and that supply and demand should dictate pricing.  Now, as an industry, we must consider what additional regulations will be on the way and account for future tightening of this new law.”