California home prices continue to rise. Our State has the second highest poverty rate in America and growing homeless populations. A couple recent laws were passed which attempt to fix these problems.
The Rent cap bill, AB 1482 made rent
control the law of the land in California this month. Landlords can only
raise rent for an existing tenant by 5% after inflation.
The cap
initially applies to California apartments built before 2004. It exempts
single-family homes (unless owned by a corporation) and duplexes where the
owner lives in one of the units. Buildings
constructed in the last 15 years will be folded in on a rolling date, meaning
units built in 2006 will be covered in 2021, units built in 2007 will be
covered in 2022…
(The rate of inflation is tied
to the Consumer Price Index in each metropolitan area)
New laws for granny flats and
Accessory Dwelling Unit Laws also passed in 2019. One law
addresses home owners that created accessory dwelling units (ADUs) without the
required building permits may have the opportunity to bring their ADUs into
compliance. For ADUs that were constructed without building permits, local
building officials now have the option to inspect an ADU and bring
to code. Cities also have newer building codes allowing for a garage unit or
tiny house.
What
do these trends mean? Housing is tight in California. Homeowners need to find ways to adapt to waves in housing. Real Estate investors
need to be ahead of the trends. What do you think is ahead for real estate?
Rates are at all time lows.
Caroline
Gerardo Barbeau C G
(949)
784- 9699
NMLS
324982
CMG
Financial
