Happy Belated Birthday San Francisco Rent Ordinance

On June 13the rent ordinance had it's 30th birthday. Do you think this ordinance has lived up to it potential?

To evaluate whether the Ordinance has accomplished it purposes in life, we have to go back to the beginning. The Ordinance starts out with the following:



“Tenants displaced as a result of their inability to pay increased rents must relocate but as a result of such housing shortage are unable to find decent, safe and sanitary housing at affordable rents levels. Aware of the difficulty in finding decent housing, some tenants attempt to pay requested rent increases, but as a consequence must expend less on other necessities of life. This situation has had a detrimental effect on substantial numbers of renters in the City, especially creating hardships on senior citizens, person on fixed incomes and low and moderate income households.”



“. . . a housing shortage still exist with the City and County of San Francisco and total deregulation of rents at this time would immediately lead to widespread exorbitant rents increase and recurrence of the crisis, problems and hardships . . .”


National Apartment Association for several years in a row, has identified San Francisco as one of the cities with greatest annual increases in rents. How can that be? 1978 is looking pretty good by comparison if you’re a renter.

The basic economic rule here that we need to remember is that when you have adapted such a rule and allow a restriction on rents you create a shortage of available units. When available housing does come on the market it's allows for those rents to be higher to balance for the lower rents.

In order for this ordinance to create reach exactly what it was meant to do it would have to create complete stagnation in San Francisco. Does everyone want to live in the same apartment from 22 until they die? I don't believe so, so this basic human nature eliminates the use of this ordinance. San Francisco with it's great weather, beautiful views and strong economy would not allow for this.


Your Thoughts?