Oregon Makes History by Enacting Nations First Statewide Rent Control Law
Rent control in Oregon just became a reality this week as Governor Kate Brown signed the nations first statewide rent control law that limits rent increases to 7% plus inflation.
After signing the bill, the Governor indicated that this effort won’t be her last at taking steps to curb Oregon’s affordability crisis which it’s been dealing with for years.
In an interview on Thursday 2/28/19 following her signing of the bill, Governor Brown had this to say about it: “This legislation will provide some immediate relief to Oregonians struggling to keep up with rising rents and a tight rental market,” Brown said in a statement. “But it does not work alone. It will take much more to ensure that every Oregonian, in communities large and small, has access to housing choices that allow them and their families to thrive.”. (Scroll below for video)
What Happens Next?
Besides her signing the statewide rent control law, Governor Brown is also planning on signing a new bill which authorizes $400 million in investments which are aimed at dealing with homelessness in Oregon, especially among the state’s veterans. Her goal is to have these new investments rolling into the state’s economy ASAP and tripling the pipeline of affordable housing in Oregon by 2023.
Opposed by Property Owners
Following her signing of the rent control bill, it was opposed by landlords, property owners, and other organizations including the National Multifamily Housing Council.
The most obvious objection to statewide rent control that just about every investor who owns single family homes or multifamily properties in Oregon will agree on is that it will stifle housing development here because fewer investors will want to put their money into developing new rentals in this state if their earnings are capped because of rent control.
Besides creating a lack of housing supply, there’s also the assumption that rent control will adversely affect smaller “mom and pop” landlords because they will have less cash flow due to rent control and will not be able to make improvements to their properties in the years to come.
What’s your take on rent control in Oregon? Feel free to leave us a comment below!
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