Renters across California may soon find some relief from endless rent hikes as a result of an agreement reached between Governor Gavin Newsom and the Legislature. The proposal would cap the rate at which landlords can raise rent prices – a maximum of 5 percent plus inflation per year.
The bill now heads to both the State Senate and the Assembly for a vote. Although strongly opposed by landlords, should the bill pass as it is expected to do, would be a major victory for rents who have faced steep increases over the past several years. As more Californian’s found home prices unaffordable, demand for apartments increased, resulting in a rapid increase in lease costs.
Part of the compromise included an exemption on apartments built within the last 15 years from the rent cap – up from a period of 10 years proposed by tenant advocates earlier on.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.
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