“Rent control determines how much a property owner can charge tenants. It also dictates when, if and how much a property owner can increase a tenant’s rent.

While supporters see the ordinance as a way to put the brakes on skyrocketing rents and provide some stability for renters, opponents argue the measure would worsen the state’s housing shortage because developers will be less inclined to build new apartments and rental housing if rental income is limited.

The case against Proposition 10

Matthew Fienup, an economist and executive director of California Lutheran University’s Center for Economic Research and Forecasting, is one of those who doesn’t see Proposition 10 improving the state’s housing situation.

While the proposition is well-intentioned and aims to improve California’s housing affordability issues, rent control is a counterintuitive idea that will only make the situation worse Fienup said. He said because rent control places additional restrictions on real estate developers, they will be disincentivized from building in cities that have rent control policies, which will worsen the supply-and-demand issues that have plagued the state’s housing market for years.

“We are trying to address a supply issue, but policies like Proposition 10 prevent residential construction from happening,” Fienup said. “The reductions in supply that result from rent control are so dramatic that Proposition 10 likely will increase rent prices instead of decreasing them. The No. 1 policy priority is to build more houses of every kind.”

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