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Vacancy decontrol a necessary feature of a functioning market
Editor's note: While passage of the Justice for Renter's Act would not in itself bring about vacancy control, zealous advocates view this form of "strict rent control" as their ultimate goal. With the green light of the JFRA's passage, they would pursue its introduction vigorously.
The Justice for Renters Act is the latest attempt to repeal the Costa-Hawkins Rental Housing Act at the ballot (following the defeat of Proposition 10 in 2018 and Proposition 21 in 2020).
Costa-Hawkins represents a balanced approach to rent control, allowing stabilized rents during a tenancy and market-rate increases once the tenant voluntarily vacates. It also promotes development by exempting new construction, and owner-occupancy opportunities by exempting single-family homes and condos. It was enacted in 1995, in part, to avoid the harsh and unworkable application of "vacancy control"—the permanent control of rental units, even following the voluntary vacating by the tenants.
Vacancy decontrol has proven to be a necessary feature of a functioning market, promoting investment in, and maintenance of, quality, affordable rental housing. Vacancy control would create winners and losers based on chance (or worse, black markets, with the "selling" of low-rent housing by tenants to their chosen assignees), further alienating newer renters. It would discourage investment in rental housing, leading to further scarcity in housing at a time when California desperately needs more.