Rent increases in least expensive apartments show need for rent control

Rent increases in least expensive apartments show need for rent control

By Lynda Carson - August 14, 2016

Oakland - According a recent report from Zumper rents in Oakland are the fifth highest in the nation with one bedroom prices rising 11.6% on the year to $2,210 per month, and two bedrooms rising 13.8% on the year to $2,730 per month to rent. Rents in Oakland have been rising, but are still behind San Francisco, New York, NY, Boston, and San Jose.

Massive rent increases in the least expensive rental markets and apartments reveal why there is a real need for strong renter protections including real rent control, and just cause eviction protections to help stabilize families, and our communities. In contrast, most landlord supported rental protections and so-called renter protections being promoted by the City Council of Alameda and Mountain View, are too weak to protect families from escalating high rents, and displacement of families from their apartments, due to no-cause evictions.

As much as greedy landlords living in very fancy homes may snivel and complain about renter protections, some recent reports from Zillow and the National Low-Income Housing Coalition (NLIHC), reveal why rent control and just cause eviction protections are needed to offer stability to families being exploited by greedy landlords, and slumlords.

According to one recent report from Zillow, “The majority of all new construction built since 2014 has been at the top of the market in large markets analyzed by Zillow. The lack of supply among the least expensive third of rental homes and overall strong demand for rentals is driving up rents. Rents among the cheapest apartments are outpacing the growth of the entire rental market in 15 major markets analyzed by Zillow. Over the past year, 11 of the 15 housing markets in Zillow’s analysis saw double-digit rent appreciation among low-end apartments. As with most things in economics, the explanation for the differences in appreciation among bottom- and top-tier apartment rents boils down to supply and demand. Demand for lower-end rentals has been booming at the same time as new supply has been slow to materialize.”

As much as the landlords and the California Apartment Association (CAA) may try to hoodwink the public into believing that renter protections are bad, the statements made in the above mentioned report by Zillow clearly demonstrate the need for strong renter protections, including real rent control, and just cause eviction protections to help stabilize families, and our communities.

In an additional report from Zillow, it states: “Renters making the U.S. median income and looking to rent the typical rental home nationwide should expect to devote 30.1 percent of their income to rent as of Q1, up from 29.8 percent at the end of 2015 and well above historic norms of 25.8 percent. Roughly one-third of American households that rent their home. And for them, the affordability situation is plain bad – and getting worse.

As of the end of Q1, renters making the U.S. median income and looking to rent the typical rental home nationwide should expect to devote 30.1 percent of their income to rent, up from 29.8 percent at the end of 2015 and 29.6 percent a year ago and well above historic norms of 25.8 percent. Of the 35 largest metro markets nationwide included in this analysis, rental affordability today is worse than it was historically in all but two – Pittsburgh (24.8 percent currently vs 28.3 percent historically) and Sacramento (31.2 percent vs 31.7 percent).
Nationwide, the least affordable large rental markets include Los Angeles (47.6 percent of income needed to afford the typical rental home), San Francisco (46 percent) and Miami (43.9 percent). The most affordable rental markets in Q1 2016 included St. Louis (23.6 percent), Pittsburgh (24.8 percent) and Detroit (25.1 percent).”

As the rents are rapidly rising in Oakland and other cities around the Bay Area, the above mentioned additional report from Zillow clearly reveals that there is a real need for renter protections, including strong rent control, and just cause eviction protections in the Bay Area to stabilize our communities.

Further evidence of a need for renter protections including strong rent control and just cause eviction protections, may be found with the National Low-Income Housing Coalition in a recent report on how affordable housing is out of reach, for many American workers.

Renter protections are on the ballot in 6 cities in November. Tenant advocates across the Bay Area are urging renters to vote on strong renter protections during the upcoming November elections in the cities of Oakland, Richmond, Alameda, Burlingame, San Mateo, and Mountain View. The activists are also urging people to vote against any weak proposals placed on the ballot by the City Council in Alameda, and Mountain View.

See links below to more data that reveals the need for real renter protections including strong rent control, including just cause eviction protections.

Top-10-cities-largest-rent-increases

https://smartasset.com/mortgage/top-10-cities-largest-rent-increases


Oakland-California/market-trends

http://www.trulia.com/real_estate/Oakland-California/market-trends/


Average rent in Oakland

https://www.renthop.com/average-rent-in/oakland/san-francisco-bay-area-ca


Average rent in Oakland rent trends

https://www.rentjungle.com/average-rent-in-oakland-rent-trends/


Oakland rent statistics - Trulia

http://www.trulia.com/real_estate/Oakland-California/


California-rent-data

https://www.apartmentlist.com/rentonomics/california-rent-data/


Lynda Carson may be reached at tenantsrule [at] yahoo.com

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