California
In reply to the discussion: VOTE NO ON PROP 10, OR I COULD BE HOMELESS.... not kidding [View all]still_one
(98,883 posts)The good news is that for existing renters it will limit the amount landlords can increase rent each year determined by the respective local rent control board. Therefore the net effect is a positive, so that I fully appreciate it, and I will be voting yes on it, because it at least it addresses a problem for existing tenents
Unfortunately, it is only a bandaide. Vacant or new rentals can charge whatever they want, or as some would say, what the market will bear, before rent control would kick in for vacant or new rentals.
The biggest problem with real estate prices in California is that locals are competing against foreign investors, and while I don't think it will happen, it would be nice if they would restrict real estate purchases to citizens. It is a big problem in the bay area, because local people are priced out. Foreign investors come in, offer a high cash price, and its over.
However, in that respect Proposition 10 may cool the rental real estate market, unless it is new rental property construction, and that may have a depressing effect on real estate prices in general