CORRESPONDENCE - WS-1 OPPOSITION

Home Browse Search

Itwould be incorrect to compare Berkeley to Alameda County, or Santa Monica to Los Angeles County, in any absolute sense, because these cities are certainly different in many respects from their counties. Our methodology was to compare the percentage changes in the cities with the percentage changes in their counties over the same time period. Comparing the percentage changes in the two cities with the percentage changes in their counties allows the analysis to be placed in a comparative, rather than absolute, frame of reference. Wherever changes in the cities occur in a very different way than occurred in their counties, it can be assumed that factors unique to the cities; such as a very restrictive rent control, are a major contributor. Strengthening this methodology is the use of two restrictive rent control cities which are very different from each other. Santa Mon Ica and Berkeley are very different from each other intheir economic composition, ethnic and age makeup, income, and other features. -Thesimilarity of their restrictive rent control laws is one of the greatestsimi larities between the two clues. If both of these cities have housing and population changes which are similar to each other, but which are very different from their counties, a strong argument can be made that these differences are related to the restrictive rent control laws. HOUSING AND POPULATION Frequently, rent control is .enacted to ensure that the cost of housing does not exceed the housing needs of a diverse population. Since maintaining a population diverse in socio- economic ociaeconomic characteristics is important to the health of a city, some local governments have chosen to pass ordinances with the i retention of preserving and protecting rental housing stock: The more complex the socio-economic structure of the community, the more important it is to maintain a diverse residential mix that houses the necessary labor force and consumers of goods and services, the more likely the communitywill choose somemethod to maintain parity between owner -occupied and rental housln& There is some doubt, however, that rent control meets these goals. Although the free market does trot always supply all housing needs fora diverse population, specifical ly housingforiow- ineome persons, it is not clear that rent control achieves that purpose, either. The "unknown" is the effect of rentcontrol ordinances that may erect barriers tothe stated goals of the taw, The fol lowing discussion of housing and population, cultural diversity, and economic issues seeks to add clarity to some of the questions forming the direction of this study, Housing Stock one of the undesired effects of restrictive rent control is that it limits the ability of investors to obtain adequate returns on their investments, Consequently, investors In residential rental properties will either convert to alternative investments or neglect to maintain their properties. U.S, Census data were used to determine if, underthe present ordinance, the quantity of rental housing stock in Berkeley and Santa Monica remained approximately the same, and if the changes in rental housing stock were consistent with those changes observed in the counties, The CaG)ixn7s Pate vnrvmtty—Rerl Estara & Land Use institute