Page 25 - 2021aa01
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 Another Attack on Costa- Hawkins and Vacancy Decontrol?
A newly minted, Millennial age, 25-year-old Assembly Member, Alex Lee (D-Freemont), apparently wants to repeal the Costa-Hawkins Rental Housing Act of 1995, the State law that allows rental property owners to increase rent and charge market rates upon a vacancy, and protects certain properties such as single-family homes and condominiums and newer construction from being subject to rent control.
Despite resounding defeats of Proposition 10 in 2018 and Proposition 21 in 2020, Assembly Member Lee plans to introduce a bill calling for Costa-Hawkins’ repeal. We do not anticipate this will be the first proposed bill the new Assembly Member will introduce – his first proposal will apparently be to ban all corporate contributions to political candidates. That idea will surely go over Sacramento like a “lead balloon.”
We do not believe Assembly Member Lee will be successful on either of his retreaded proposals, and by proposing these bills, he will likely alienate most of his Democratic colleagues with his “extreme” regulatory ideas. “Off the record,” fellow Democratic lawmakers believe Mr. Lee is a little too extreme for them, but not all Democrats feel that way, though.
Assembly Member Lee was an intern in the Capitol only three years ago, and his idol is apparently New York Congresswoman, Alexandria Ocasio-Cortez. I guess we can expect some nutty ideas to come out of this new lawmaker for a while.
San Francisco Bay Area Apartment Market Taking a “Hit”
San Francisco and the surrounding Bay Area has morphed into a “renters’ market” these days as the trend of declining rental prices continued for the month of November. Although still the most expensive rental market in the U.S., but rents have trended downward as the prolonged pandemic has caused increased vacancies and has put downward pressure on prices. Most real estate experts agree that any sort of market rebound will be unlikely during the Winter months and future market trends are very much depending upon factors such as businesses reopening, job trends and the anticipated rollout of coronavirus vaccines.
Rental market trends for San Francisco and the surrounding Bay Area for November 2020 include the following:
• San Francisco. Month-over-month declines of 3.4% with an average price of $2,054 for a one- bedroom apartment, and $2,377 for a two-bedroom unit.
• Bay Area. Oakland has experienced the second largest rent decline trending down 3.3% in November with a median one-bedroom price of $1,660 and two-bedroom for $1,970. Redwood City declined 2.4% and San Mateo went down 2.2%. Rent declines in Menlo Park, San Mateo and Mountain View, all down 5.1% each for a one-bedroom. Month over month rental increases were seen in Livermore at 4.9%, Milpitas with rent increasing 4.8% and Vallejo at 4.3. Hayward was relatively flat with an increase, at just 0.1%, and with a median one-bedroom rental price of $1,950 and two-bedroom average of $2,180. For the entire Bay Area as a whole, the median one-bedroom price decreased 1.7% month-over-month, and year-over-year terms, the median one-bedroom prices were down 10.9% on average.
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