Proposition 33: Rent Control – The 3rd Time Isn’t the Charm

By Michele Allyn
2024 President
Santa Barbara Association of Realtors

Einstein is often credited with saying “Insanity is doing the same thing over and over and expecting different results.” Proposition 33 meets that definition of insanity. California has a housing crisis. No one can argue that. There is not enough housing and prices continue to rise.  There are many solutions to this issue that could be considered but rent control should not be one of them. Proposition 33 has emerged as the latest attempt to expand rent control across the state. The measure says it will help renters, but the reality is that it would only benefit certain people and make matters worse for many more others. It does nothing to lower rents. This isn’t the first time that legislation like this has been proposed. Voters previously rejected similar initiatives twice in recent years. It’s time the proponents of rent control acknowledged the will of the voters and focused their efforts on solutions that will truly benefit the public.

Failed Attempts to Push Rent Control

The backers of Proposition 33 have a history of trying to impose rent control measures on Californians. In 2018, they pushed Proposition 10, which sought to overturn the Costa-Hawkins Rental Housing Act and allow cities and counties to impose their own forms of rent control. Voters decisively rejected this measure, with over 59% voting against it. Again, in 2020, the same groups attempted to pass Proposition 21, which similarly aimed to expand rent control. It too was rejected by voters.

The repeated failure of these initiatives sends a clear message. Californians know rent control is not the answer to the housing crisis. However, for some reason, the backers of Proposition 33 have chosen to disregard the will of the people and are pushing for the same failed policies yet again.

At its core, rent control may seem like a way to help renters by capping prices and protecting them from rent hikes. However, in cities where rent control has been implemented, it often leads to fewer available rental units and deteriorating housing conditions. When property owners are unable to collect enough rent to maintain or improve their properties, the quality of housing inevitably declines. In some cases, landlords sell their properties or convert them to condominiums, further shrinking the rental market.

With less housing available, competition among renters increases, leading to higher rents for units that are not subject to rent control. Proposition 33 would make this situation worse, particularly in markets that are already impacted by a smaller housing stock. Rent control does nothing to address the root issue of the housing crisis: the lack of supply. Instead, it creates an illusion of affordability while making it harder for future renters to find homes.

The Voters Have Already Spoken

The voters have already spoken, twice, about how they feel about rent control. It’s time for the proponents of Proposition 33 to listen. Instead of continuing to push policies that have already been rejected, they should join with the majority of Californians to focus on solutions that will increase supply and make housing more affordable. Expanding housing supply, reducing barriers to building, and offering incentives for affordable housing construction are all strategies that would have a real impact on the housing market.

Rent control doesn’t create new housing and does nothing to lower rent. It also does not discern between those who truly need assistance and those who do not. That is how people like Mia Farrow, and other celebrities benefit from rent control. The ones that do not need assistance are the ones who benefit most from it.  Voters have repeatedly shown that they understand this. California needs long term solutions that benefit renters and property owners alike, not more political attempts to revive failed policies.

Finding Real Solutions

Proposition 33’s supporters should focus on addressing the root causes of California’s housing crisis, not recycling failed policies. It’s time for a new approach.

Instead of rent control measures that will not lower prices, we should focus on increasing housing supply, streamlining zoning regulations, and encouraging development in high-demand areas. This would lead to more affordable housing options for Californians without the failures of rent control. It is the most basic of economic concepts, supply and demand.

It is crucial to reject Proposition 33 and the impacts it will have on our communities. The time has come for solutions that will reflect the will of the people and create lasting benefits for renters and property owners across the state.

Michele Allyn is the owner and manager of Allyn & Associates Real Estate and Lending, a real estate brokerage and mortgage company, serving Santa Barbara, California’s Central Coast, Ventura, Riverside, San Diego and Greater Los Angeles County. Michele has been a member of the Santa Barbara Association of Realtors since 1973, and currently serves as the President of the Board of Directors. Reach Michele at 805-895-5101 or micheleallyn@yahoo.com.