NAHB Continues to Push Back Against Rent Control

This post has been updated.

Rent control legislation approved by the California Assembly on Sept. 11 will exacerbate housing shortages and drive up rents. The California Building Industry Association (CBIA), aware of the near certainty of a rent control ballot initiative in 2020, reluctantly supported the compromise legislation subject to amendments.

Since the initial compromise, further changes demanded by California Gov. Gavin Newsom were made to the legislation that forced CBIA to move its position on the bill to neutral. The annual rent cap was moved backward to 5% plus inflation (from the original 7% plus inflation), but the 15-year exemption for new construction was retained.  Gov. Newsom is expected to sign the bill into law shortly.

NAHB’s policy in opposition to rent control is unequivocal. Although NAHB understands the realities of the California situation, NAHB opposed the bill and tried to put a stake in the ground on behalf of NAHB multifamily members in the other states who will likely face similar proposals in the future.



NAHB’s aggressive efforts to fight the proposal included a series of online ads. Op-eds were also submitted to several California newspapers and NAHB CEO Jerry Howard appeared on national news to comment on the pending legislation.

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Comments (3)

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  1. Dan Sloan says:

    My question is will State and Local Government Guarantee that Multifamily Rate of Increase of Total Tax Burden will not Exceed 5% per year? If not, this is a slow train to low/no profitability for investors and is neither fair nor Constitutional IMHO…

    • NAHB Now says:

      We are not aware of any tax changes in this current legislation, but will continue to monitor the legislative process and work to ensure fair tax treatment for multifamily builders.

  2. Wendy S says:

    I wonder what impact the California fires will continue to have on rent control. It will be interesting to see how property value is effected, which in turn will affect rent control.

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