“Following decades of strong population growth and persistent underbuilding, California is in the midst of a housing
crisis. The statewide failure to keep up with new demand for housing, even through the recent period of rapid economic
growth, resulted in a shortage of available housing and rapidly rising housing costs. In particular, apartment rents surged
since the end of the Great Recession, and vacancy rates in many California markets fell to historically low levels. Indeed,
the lack of housing affordability represents a major hurdle for many residents and is a significant risk for the California
economy. Although there are many factors contributing to the difficulties of building adequate new supply, rent control
policies, which are often touted as an affordability solution, exacerbate the problem by significantly reducing the supply of
rental housing, even as demand continues to rise.