Honolulu, HI

Dept. of Housing and Comm. Devpt. retained The London Group Realty Advisors, Inc.

"The Impact of Rent Control on the City and County of Honolulu" (1995)

To evaluate national rent control experience against Honolulu’s rental housing market

Rent Control Ordinances of other Cities; Studies on rent control

In many US communities, rent controls did not insure the availability of units to the neediest tenants; and rent controls impact housing delivery systems of communities, and impact growth.

Rent controls do not solve housing affordability problems, instead communities such as Honolulu must examine their housing delivery systems for solutions.

Berkeley, CA

Berkeley Rent Stabilization Board retained Bay Area Economics (BAE)

"Berkeley Rent Control 1998: Tenant Housing Profile"

To conduct survey of tenants in Berkeley’s rent-controlled units and develop profile of current tenants; Conduct timeseries study comparing 1998 findings with those from 1988.

Survey of 2000 rent-controlled units registered with the Rent Board; US Census Data

Tenant composition in rent controlled units is diverse with more single, unmarried tenants in 1998 than 1988; Substantial rent increases between 1988 and 1998 have not changed average number of persons per room; Rent burdens are impacted by income and length of tenancy (higher income and longer tenancy reduce rent burdens); Citywide, almost one-third of respondents have occupied their units since 1997 and slightly less than three-fourths moved in their units in the last five years; three fourths of tenants rate their units as of middle quality; slightly less than half the respondents report a dispute with the landlord - disputes are mostly over maintenance/repairs; Tenant opinion regarding success of Rent Control Laws dropped by 20% in 1998.

Tenant composition has changed - more single unmarried tenant households; Increased rent burdens between 1988 and 1998 have not led to overcrowding or "doubling up" in units; Increase in rent burdens for tenants between 1988 and 1998; Tenants show high level of tenant mobility; There seems to be little correlation between rent paid and tenants’ perception of their building condition; Maintenance is still the common source of disagreement in landlord/tenant relations; 1998 results indicate a significant decline in respondents’ perception regarding success of rent control.

Study Areas

Study Sponsors & Authors

Title of Study/Year Pub.

Intent of Study

Data/Data Source

Findings

Conclusions

New York City, NY

Staff Report by the Office of the Public Advocate for the City of New York

"Rent Destabilization Study (RDS) I "(April 1997);

"Rent Destabilization Study (RDS) II"(May 1997)

* RDS I -Who would be most affected by destabilization?

* RDS II - Are rent increases granted by Rent Guidelines Board (RGB) to landlords unfairly low?

* RDS I - Data from 1993 and 1996 New York Housing and Vacancy Surveys (HVS) .

RDS II - RGB’s Rent Increase data over a 22 year period.

* RDS I - Percentage of renters in stabilized units paying over 40% of their income in rent is up by 37%; 47% of units are occupied by middle-class tenants who could move out of NYC if their rents were raised to high levels; Expansion of "luxury" decontrol could affect thousands of midlle-income tenant households; Review of 1974 findings shows vacancy decontrol in NYC led to "exorbitant rents" and "harassment" of tenants.

* RDS II - RGB-granted increases have kept pace with inflation; HVS data indicate drop in tenant income, when adjusted for inflation.

Rent increases resulting from rent stabilization could force families to move out of their homes and neighborhoods.

NYC’s rent stabilization system is fair to landlords.

Rent destabilization and vacancy decontrol would reduce housing affordability for tenants.

An effective rent stabilization system should be fair in its rent increases to landlords and tenants.

Santa Monica, CA

Staff Report by the Santa Monica Rent Control Board (RCB) for the City of Santa Monica

"The Impact of Market Rate Vacancy Increases - Preliminary Report: January 1 1999 - June 30, 1999."

Compares rent controlled and non-regulated units citywide and examines the effects of rent increases as well as impacts on affordability.

Data from 1,961 vacancy market increase forms filed between January 1 - June 30, 1999 before the Rent Control Board by landlords of rent controlled units.

63% of vacancy increases filed between January and June 1999 in units that were previously affordable at 80% of median income were now affordable to renters at 100% of median or higher.

The lower the tenant’s affordability level, the greater the loss of affordable units.

The loss of affordable rent controlled units in Santa Monica increases demand for units in other areas.

Major US Cities

William Tucker for the Cato Institute

"How Rent Control Drives Out Affordable Housing" (May 21, 1997)

Effects of rent control on affordable housing.

1990 US Census Data, classified ads of rental units in 18 US cities with or without rent control; Case studies.

Rent controlled cities have few moderately priced units available and most advertised units are above the actual median rent thus creating a "shadow market;"

Rent control policies benefit "better off" tenants than poorer residents, and limit choice for all affected citizens.

Study Areas

Study Sponsors & Authors

Title of Study/Year Pub.

Intent of Study

Data/Data Source

Findings

Conclusions

New York City

New York City Department of Housing Preservations and Development commissioned a study by the U.S. Census Bureau

Housing and Vacancy Studies (conducted every three years)

To determine whether a housing crisis exists in New York City to justify the continuation of rent control and rent stabilization.

Survey of household units in New YorkCity.

Findings vary depending on the year in which the study was conducted. The Census Bureau presents raw data to the City, which is then compiled in a report for the City Council.

The data is generally used to determine future housing policies.

New York City

The American Economics Group, Inc. retained by the Rent Stabilization Association, a landlord group.

"The Effect of Deregulation on Rents & Economic Activity in New York City" (March 1997)

Analysis of rent stabilization in New York City.

1993 New York City Housing and Vacancy Survey

Stabilized units have three or more times higher deficiencies than unregulated units and add to deterioration of neighborhoods.

About 70% of rent increases (over several years) following deregulation will pay for maintenance and improvements.

With deregulation, rent increases would range from 5% in Central and East Harlem to 51% on the Upper West Side.

Average rent increases following deregulation will be small, except when tied to landlord spending on property improvements.

Despite the anticipated increases, deregulation will stimulate economic activity, adding jobs, income and taxes.

New York City

National Multi Housing Council retained Henry O. Pollakowski, MIT Center for Real Estate

"Rent Regulation and Housing Maintenance in New York City" (May 1999)

Examines the effects of rent regulation on housing maintenance of New York City’s rental dwellings.

New York City Housing and Vacancy Survey (Dec. 1998)

* Unregulated rental housing is considerably better maintained than stabilized rental housing.

* Unregulated rental units are slightly less likely to show deficiencies than post-1947 stabilized units.

* Rent stabilized units with resident turnover between 1993 and 1996 are less likely to acquire deficiencies than similar units with unchanged tenancy.

Unregulated rental housing has fewer maintenance deficiencies than regulated housing.

Further analysis is needed to determine whether the size of rent adjustments affects housing maintenance.

Study Areas

Study Sponsors & Authors

Title of Study/Year Pub.

Intent of Study

Data/Data Source

Findings

Conclusions

Cities in New Jersey

Study published in Journal of Urban Affairs by John I. Gilderbloom and John P. Markham

"Moderate Rent Control: Sixty Cities over 20 Years" (1996)

Examines impacts of "moderate" rent control laws that limit rent increases rather than impose caps.

Census data for 125 cities in New Jersey with population over 10,000.

Sampled 60 cities with rent control, 65 without rent control in 1970, 1980 and 1990.

Moderate rent control

• did not impact rent levels, rent per room, new construction or overcrowding for 1970 and 1980.
• had modest impact on rent increases in 1970-80 but not for 1980-90.
• did not impact new construction.
• lowered average size of units in 1980-90, but not 1970-80.
• no appearance of impact on overcrowding or plumbing deficiencies.

Even though moderate rent control is effective in "limiting extreme" rent increases, it does not result in substantial tenant relief from affordability. Thus, rent control in any form will never provide a satisfactory solution to the rental housing crisis.

California Cities with and without rent control

Study conducted by Allan Heskin and Mark Garrett, Urban Planning Department, UCLA.

"Rent Control and Vacancy Control: A Spatial Analysis of Four California Cities"

(NOTE: Review is Preliminary - full study to be released in 2000 )

Examine the effects of vacancy control over rental units on 1980-90 changes in housing and demographics.

US Census data

During 1980-90 period, there were fewer new rental housing units created in vacancy control cities, but more ownership units.

Vacancy Control policies had little effect on demographic composition of tenants over the 1980-90 period.

Vacancy control affected the tenure status of rental housing.