Multifamily Peek’s Post

Debate Over Federal Rent Cap Heats Up! President Biden's proposal to cap rent increases at 5% faces opposition from housing and real estate industry groups. It's certainly important to have affordable housing, but have you ever seen rent caps help a community achieve this goal in the long term in a sustainable fashion? I have yet to hear a true community success story from rent caps! * Industry Pushback: Housing groups argue against President Biden's proposal to cap rent hikes at 5% for multifamily properties with over 50 units, calling it ineffective and damaging. * Building More Housing: Experts stress that creating more affordable housing is a better solution than imposing rent controls. * Potential Consequences: Critics warn that rent caps could decrease housing quality and deter new construction, worsening the housing crisis. * Mixed Opinions: While some advocate for protections against rent gouging, others see rent caps as a barrier to investment in housing. #HousingCrisis #RentControl #RealEstate #AffordableHousing #multifamily SVN Desert Commercial Advisors National Multifamily Housing Council National Apartment Association (Naahq) National Low Income Housing Coalition National Housing Conference https://lnkd.in/gThR_Bih

Politics & Political Policies are destroying the economics and incentives of multi family investments.

Every corner of state has been touched by the housing crisis, and Realtors® are acutely aware of the shortage of inventory. A new home is simply out of reach for too many, causing people to flee Massachusetts for more affordable states. So, why would our elected leaders consider passing a new law that would increase costs, decrease values, discourage production, and – according to the governor’s office – create just a tiny fraction of the affordable housing units needed across the Commonwealth, right? #bostonrealestate #bostonrealtors #boston

🏠 California's Proposition 33 and the Renewed Interest in Rent Control 🏠 As housing costs continue to soar, California voters are facing a significant decision with Proposition 33 on the upcoming ballot. This measure aims to grant local governments the authority to impose any form of rent control they see fit, potentially overturning existing state limitations. Key points: Average Rents: San Francisco's average rent stands at $3,120 per month, highlighting the steep housing costs. Proposition 33: Known as the Justice for Renters Act, it seeks to enable localities to enact or expand rent control measures. Support and Opposition: Advocates argue it's necessary to curb rapid rent increases, while opponents, including real estate organizations and affordable housing advocates, worry it could stifle new housing construction and investment. Historical Context: Similar measures have been implemented in cities like St. Paul and Portland, sparking debates on their impact on new developments and rental markets. This vote represents a crucial moment in the ongoing discussion about balancing tenant protections with the need for new housing development. #CommonwealthLandTitle #CommercialRealEstate #TitleInsurance #MarketTrends #HousingCrisis #RentControl #Proposition33 #CaliforniaHousing #AffordableHousing #RealEstate #UrbanDevelopment #VoterDecision

California's Prop. 33 has been rejected by a majority of the state's voters. Experts bring up how rent control can restrict new developments, negatively impacting affordability. Community leaders are pointing to local initiatives as a better solution than state-wide efforts for controlling rent. "streamlining permitting and land use approvals" would be a better solution for affordability and availability according to Columbia Professor Stijn Van Nieuwerburgh What do you think we'll see in the multifamily development market in 2025?

The debate over #rent control has resurfaced amid the housing crisis, yet recent political and voter trends suggest its implementation faces significant hurdles. Proposition 33 in #California: Voters rejected a statewide rent control expansion for the third time, signaling rent control's unpopularity at a broader scale. Local vs. Statewide Success: While statewide measures struggle, local initiatives like Los Angeles County's sales tax for affordable housing and rent control ordinances in cities like Berkeley continue to gain traction. Multifamily Industry Impact: Research consistently shows rent control deters investment and reduces #housing supply, prompting stakeholder concerns. The path forward seems clear: local efforts will define rent control's future. Yet, the appetite for such policies may dwindle with a political shift to the right. Check out my latest Propmodo article discussing rent control and what the future may hold for a policy that significantly impacts the #multifamily industry. #realestate #housingcrisis #commercialrealestate #rentcontrol https://lnkd.in/eC2jddqm

Here’s another valuable read. Thanks to Fair Share Housing Center for highlighting these great pieces this week!

There's a reason why the Los Angeles Times, San Francisco Chronicle, and Housing Action Coalition oppose Prop 33 — it could have the unintended consequence of making our housing shortage and affordability crisis worse. If Prop 33 passes, it will allow wealthy, exclusive, anti-growth cities to impose requirements that would make building new housing financially infeasible. This would upend the significant pro-housing progress California has made in the past few years. We support expanding tenant protections, but Prop 33 is a trojan horse that would give NIMBY cities the power to block new housing development. NO on Prop 33 ❌ https://lnkd.in/gvnRasYu

Calling it “typical election year rhetoric”, a broad coalition of housing and real estate industry groups has pushed back on President Joe Biden’s proposal for a national rent control plan that would cap rent increases at 5 percent at properties owned by corporate landlords… It is unlikely that such a proposal would pass either the Republican-controlled U.S. House of Representatives or the Democratic-majority U.S. Senate, especially with four months to go until the 2024 presidential election. Housing industry groups reacted quickly to the president’s proposal, most pointing to decades of research showing rent caps reduce the supply of available housing and fail to benefit the renters who need help the most. “This legislative proposal will not create a single new unit, while raising costs on the very residents it purports to help,” Sharon Wilson Géno, president of the National Multifamily Housing Council, said in a prepared statement. “Rent control has been tried for decades and been a resounding failure. Now is the time for actual solutions, not electioneering.” More details here: https://lnkd.in/gDNnmZmd #multifamily #realestate #REITS #housing

“Because we believe that housing is a human right, like food or health care, we believe that more Americans deserve the option of social housing. That’s why we’re introducing the Homes Act, a plan to establish a new, federally backed development authority to finance and build homes in big cities and small towns across America. These homes would be built to last by union workers and then turned over to entities that agree to manage them for permanent affordability: public and tribal housing authorities, cooperatives, tenant unions, community land trusts, nonprofits and local governments. Our housing development authority wouldn’t be focused on maximizing profit or returns to shareholders. Rent would be capped at 25 percent of a household’s adjusted annual gross income. Homes would be set aside for lower-income families in mixed-income buildings and communities. And every home would be built to modern, efficient standards, which would cut residents’ utility costs. Renters wouldn’t have to worry about the prospect of a big corporation buying up the building and evicting everyone. Some could even come together to purchase their buildings outright.” Opinion | Alexandria Ocasio-Cortez and Tina Smith: Our Solution to the Housing Crisis