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EXECUTIVE SUMMARY The objective of this project is to review the impact of restrictive rent control on several population and housing Issues; to compare objectives with results. The study concentrates on cities with restrictive rent control, because It is in these cities that the intent of the ordinances may not meet their intended goals. The 1980 and 1990 Census were compared to ascertain the percent change between Berkeley and 'a reference county, Alameda; and Santa Monica, and its reference county, Los Angeles. The results indicate that. • Both Berkeley and Santa Monica lost rental housing units (single-family detached and single-family attached units) while their reference counties added to their rental housing stock. Both cities lost structures with five or more units, while their reference counties gained this type of housing structure, • Both Berkeley and Santa Monica showed declines in renter -occupied rooms while their reference counties gained<renter-occupled rooms, Both cities and both counties gained owner -occupied rooms.; • Pent ordinances may cause biases against certain age groups. The data indicate that family composition may be affected as t}se:number ofpersons in their early child- bearing years is declining in both cities. Also, despite the rapidly aging society, the elderly population is either declining or barely increasing in both of these cities, while in their counties, the elderly population Is increasing rapidly, • Both cities saw declines in the percent of the population that rented. The greatest declines were among White renters. While the proportion of Hispanic renters increased for the subject and reference areas, that proportion did not increase as fast in the two cities as in their counties. • Overall, lower income renters declined in both cities., In Berkeley, the declines were greater. Although the proportion of lower income renters increased in Santa Monica, the Increase did not keep pace with the county increase. • The comparisons indicate that rent control ordinances offer a benefit to some renters; but It is not clear that the groups for whom the benefits were intended are the actual recipients. • Gentrification (that is, the displacement of lower economic and educational status renters by higher economic and educational status owners) is the opposite of what the rent control ordinances seek to achieve, but is occurring to both cities. The two restrictive rent control cities have become increasingly inhabited by higher -income; higher -educated home owners since rent control The data show that the restrictive rent control ordinances in Berkeley and Santa Monica do not meet their stated goals. Instead, the groups for whom the ordinances were written appear to be the least likely to receive the benefits, and appear to be leaving, these two cities to find rental housing elsewhere. rho Ofifor"h State Uns` MOY —Raaf Estate S L A adlya Instkute li