Oregon Gov. Kate Brown signs nation’s first statewide rent control law


#1

It’s an exciting time to live in Oregon. Housing will magically buck the law of supply and demand and become inexpensive!

Oregon Gov. Kate Brown signed into law a first-in-the-nation rent control bill Thursday and called on the Legislature to turn its attention to funding new housing initiatives.


#2

Watch “supply” magically vanish; then what will she do?..


#3

Complain about how rotten capitalism is. The trouble is rent controls are a form of socialism which almost always leads to shortages.

I wonder if their new laws allows landlords to pass through increases in property taxes? That would send a message to renters. “Your rent went up because the property taxes increased.” If not then, get ready for the lame stream news media to run stories a couple of years from now about how more public housing is needed in Oregon.


#4

Hoping it has the California effect enough that I can move somewhere else and pay cash for a house, survive long enough to find work and have no house payment – and get out of this Godforsaken state.


#5

I totally agree with you folks that this law goes in the wrong direction. If there is a shortage of affordable dwellings, it would make more sense to cut taxes, especially for landlords and apartment builders.

But the details of this particular law don’t sound like much of a restriction.

The rent increase restrictions exempt new construction for 15 years,
and landlords may raise rent without any cap if renters leave of their
own accord.

You get natural turnover in any apartment building. So whenever anyone moves out, there’s no restriction on what you can set the rent at for the people moving in to fill the vacancy. And they can raise rent by 7% plus inflation each year. At 2% inflation, after 5 years that’s an allowable 54% increase.

But I think it will have three negative effects:

  1. It will disincentive landlords from doing upgrades to existing apartments more than 15 years old.
  2. It will discourage landlords from offering first-year discounts.
  3. It will encourage government to further muck with and break the free market economy.

#6

What free market economy?


#7

I agree that it’s a large cap – same effect as minimum wage that is less than half of the median wage, not much, just something politicians can use to say they did something. But it will be a discussion item for our single-party government every session now. The tenant organizations were pushing for a tighter cap. It’s in now. The only way it’s going to go is tighter.

Despite the relatively large size of the cap, I’ve heard of a couple of cases of rents going up immediately in anticipation of the rent control. Space rent on one guy went from $350 to $520. No doubt the landlord argument is and ought to be this: The state is going to restrict me more in the next couple of years – I need to get what I can now to take care of my responsibilities as a landlord and that I still earn a profit, my paycheck.


#8

This reminds me of Jimmy McMillan running for office in New York in the Rent Is Too Damn High political party.


#9

The dude looks like black Hulk Hogan…