At the present time, there is no form of nationwide or even statewide rent control in the United States. In basic terms, rent control refers to any government regulations on rental housing costs or limits reasons for eviction. These systems are most commonly used in populated cities where securing a home can be very difficult, especially for the lower class and disadvantaged groups. Being that California hosts such a high concentration of people, many local governments have established rent control to assist tenants in their communities. The State of California is in desperate need of a statewide rent control system. The current system of free market has lead landlords to abuse tenants. This practice, called ‘gouging’, is described by …show more content…
However, many individuals cannot just move when housing becomes expensive due to factors such as proximity to work, education, or family. Even when proper housing is secured, it may not be affordable in the sense that people may be paying too large of a proportion of their income. Those dependent on life insurance, and annuities or pensions will have an impaired standard of living (Borders 112). This would disproportionally damage low income families, who are more often renters than homeowners, as they must cut back on other basic needs such as food and insurance. Therefore, a multilayered policy of rent control would be necessary to achieve fairness in this inequality (Hanly 194). Just as minimum wage was established for a minimum standard of living, rent ceilings could allow affordable housing to meet that minimum standard of living (Hanly 194). The lack of affordability often leads to insecurity of tenure. Every abiding renter should have the right to security of tenure. Without rent control policy, landlords need little or no reason to evict tenants via gouging (Hanly 196). As long as the rent is paid according to the rental contract and the tenant does not violate any code, the right to occupy should be preserved (Hanly 196). This would also prevent different rent increases between substantially identical units by landlords who are attempting to evict or gouge a particular tenant. These laws have been widely practiced across the
the rent is set at a lower than normal level, an unsatisfied demand is created.
If the government were able to lower rental costs, would it benefit those who cannot afford an increase in rent? This would be the immediate benefit. People would be able to better afford where they live. The issue is that the overall outcome is not considered. Rent control leads to unjust opportunities for those wanting to rent. The current residents would likely stay because of cheaper rent. It discourages landlords to repair or improved rental facilities since they no longer have a financial incentive. It also encourages the landlord to abandon current properties because of
Although the recent tech boom in San Francisco has been blamed for the increased housing demand and the lack of affordable rental housing in the City, the reality is that the shortage of affordable rental housing been steadily climbing for the last 35 years. Rent control is oftenat the center of the controversy regarding the affordable housing shortage. In response to high inflation, and escalating rents, San Francisco’s Residential Rent Stabilization and Arbitration Ordinance was passed in 1979 (Forbes, Sheridan, 1999). Rent control imposes restrictions on landlords in regards to rent increases and evictions. It is estimated that seventy percent of San Francisco’s rental units are under rent control (Marti, Shortt, 2013). Because of the limited rent increases allowed, tenants living in these rent controlled apartments seldom move out, which severely impacts the vacancy rates in the City. Although the vacancy rate among rent-controlled units is extremely low, there are occasions when a tenant may vacate a rent control unit (a job out of the area, the decision to purchase a home, etc.). When a rent-controlled unit is voluntarily vacated, the landlord is allowed to raise the rent to market rates (this is called vacancy de-control); then the rent control annual increase takes effect on the new rent. A landlord will often raise the new rent to the highest possible price the market will allow, in an attempt to recoup the financial loss he is incurring on the units still under rent control. Because of the new higher rent, the previously affordable unit is no longer considered affordable; which then impacts the inventory of affordable housing in San Francisco.
As stated by Richard F. Burns and Thomas G. Vaccaro in Unaffordable Housing: A Root Cause of Social Inequality, 80% to 120% of area median income—also struggle to find affordable rental units in all 50 states. This lack of “workforce housing” results in their inability to live in or near the places where they work. Not being able to live near work if results in higher cost of living because you end up having to pay for either a car or, you could rely on public transportation or even have to pay forward gas money to another person. Housing also ties(“is also tied to”) to cost of living which turns out is very expensive. According to DePersio, Greg in "How Much Money Do You Need to Live in Los Angeles?, As of August 2015, the average rent in Los Angeles is $2,296 per month. Even if someone is only looking for a one-bedroom apartment, the average cost sits at approximately$1,950 per month. A two-bedroom apartment averages slightly over $2,500. So as one can see that they have to make at the very least $13 an hour just to pay rent, this does not even include food or utilities let alone if they have kids forget it. Because of unaffordable housing has left millions without homes making them fall under the category of
First, growth controls exist in many cities and counties in the coastal metros. More than two-thirds of the cities and counties in California coastal areas have enacted policies limiting housing growth . Some of them adopted policies that directly cap the number of new homes to be built in a specific year, or limit the densities of the building A common indirect policy to limit new housing growth is to require a supermajority, of the local boards to approve the construction project. However, such supermajority often is hard to reach, leading to the project to be scotched.
Block, W. (n.d.). Rent Control: The Concise Encyclopedia of Economics | Library of Economics and Liberty. Retrieved February 24, 2014, from Web site: http://www.econlib.org/library/Enc/RentControl.html
In my experience as a real estate sales representative, I have looked at many rental properties that are owned by people that are commonly known as slum lords. These units are in disrepair with leaks, mold, mildew, holes in walls, ceiling and poor floor coverings. Many people are afraid of pushing these issues to have repairs done as they might lose their shelter or their rent could be increased. There are people living in a rooms in a house, that are also at risk as they don’t realize they are not protected under the tenant act so the owners can remove them from their shelter without notice. I have also experienced people living in abandoned commercial buildings ...
We have struggled to find good housing that will be sustainable to house all five family members of mine but is still affordable. Due to gentrification we were forced to move out of our home since the rent prices skyrocketed. Luckily we were able to find a home that was more affordable although it is small housing for five people, it was the best we can find. Many others face this same problem and some have not been as lucky as my family to find another housing option near by. According to A Map of Gentrification In the Bay Area published by KQED News and written by Dan Brekke, “The crisis is not half over” — meaning that rising rents and home prices, along with an influx of more affluent people, increase the pressure on low-income people to move to the region’s outer suburbs.” It also states, “Fifty-three percent of of all low-income households in the region live in neighborhoods at risk of, or already experiencing, displacement.” These statistics are frightening and should not be taken lightly. This means that half of the Bay Area has already and if not it will experience displacement. This displacement can leave many homeless, and without any options of other affordable
There are people in the neighborhoods that can enjoy the neighborhood enhancements because they know they can survive the inflation of their rent. There are people that are oblivious to the fact that their rent will increase a significant amount, because they are excited that there will be shiny new locations arriving in their area. Once their landlord explains to them that their rent will increase – in New York it could be up to fifty percent – they will be struck with the sad reality of gentrification. Gentrification is similar to other social issues, primarily in the fact that one does not think about the issue until it affects them.
Especially, people who prioritise their bill payments over their own health as it is extra cost for the medical services. Unlike others on a higher income they have more control over and accessibility to services that will benefit their own health. Also, income induces the affordability one can afford to rent or own their own property in order to have a roof over their head. This other health inequality of low income means poor housing which lack insulation, resulting in the deterioration of the tenant’s physical health due to moulding from the moisten, cold environment. On the other hand, home ownership enables others to make the necessary upgrades in order to improve fixtures round their home. This means an absence of moulding with the insulation provided which will benefit their physical health and less likely to fall ill. Both these social determinants of income and housing together result in the final health inequalities of stress. The stress of having no sense of control over your own life is no doubt a depressing thought for anyone. Especially, for people actually going through life in these circumstances it is most definitely not a life of justice. Although, the government have put in place a Health Strategy for the elderly population it is only a matter of time until there is fairness the elderly population in New
The American dream was owning a house with a white picket fence. Now this dream is impossible. Individuals and families find it more difficult to find a decent home to rent in a suitable living area. According to Huffington Post, the hourly wage needed to afford a two bedroom apartment in California is at least $26 an hour. This is more than triple the minimum wage. Eviction, relocation, and inflation are the common keywords that associate with affordable housing. I 'm hoping to persuade you to support affordable housing for all. Today, I will be discussing, one, inflation of the housing market that needs to decrease, two, eviction from homes, three having to move to communities far from their work site.
This paper will be predominantly focusing on public housing within Ontario. Not only will it look at the basics of Ontario but examine more directly on Regent Park within Toronto. It will discuss what public housing is and the explanation for why it exists, the government housing programs that are present with regards to public housing and the results of the government programs. The Purpose of this essay is to argue that the problem of public housing will never
Although homelessness is widespread and almost next to the catastrophic global hunger problems, it can be brought under control and its effect reduced to a greater percentage. By simply tracking the root causes of low wages and the lack of affordable housing as well as improving other support systems like housing vouchers and health care, homelessness can be solved.
On a normal of our everyday life, we find ourselves going to work or heading somewhere to meet up with a friend. While on the way there we pass someone that we don’t know sitting down on the ground alongside with him is a cart from a store filled with old clothes that either found or got from someone, some trash, maybe something small to eat to help with his hungry stomach growling throughout the day. You wonder how he got themselves into a position like that? Yet sometimes we know how he got there, although, we don’t always know someone else’s story. You leave some money by his foot to help get himself somewhere for a short time. Homelessness has increased over the years, from 1990s up until now. I believe that we can help these get back into a better environment for their life with the help of local shelters, food banks, donations from churches and schools, and many more things we can do in Licking County.
Nevertheless, the standard has been reduced to no more than 40% until recently. Such dramatic change of the figure has made the goal become ambiguous. Practically, the government has tried many methods in dealing with the housing problem. Housing code enforcement is a method that tries to regulate minimal conditions for rental housing. However, this method does not seem to work because it brings additional costs to the tenant. On the other hand, the government tries to help people become homeowner by benefits in kind, such as imposing tax exemption on first home down payment and low interest rate on mortgages. However, the method does not really aim at helping the poor. Moreover, the government tries to increase the supply of housing by building new shelters and buying existing apartments. Yet, none of these work efficiently. The reason that building new shelters does not work is because most of these new housing projects are expensive and time consuming.