Renters Complained, States Listened, Owners Panicked
Affordability challenges have become an overarching theme, and perhaps the one dark cloud hanging over the sector. While the growing economy has led to increased wage growth, it has not been enough to cover the rise in rent for most markets. It has reached a tipping point; according to an annual report by the National Low Income Housing Coalition; a full-time minimum-wage employee can not afford to rent a two-bedroom apartment anywhere in the U.S.
Rent Control Legislation Introduced, Passed
In 2019, California, New York, and Oregon enacted rent control, and tightened their eviction policies. Meanwhile several other states have introduced new legislation to take similar measures. Some policies are tied to inflation, while New York has multiple tiers of annual rent increase limits, dependent upon the specific subcategory of rent control under which a given property falls. It is a confusing situation, to say the least; however, it does present opportunities for investors.