County commissioners in Orange County last week moved to put a measure on the November ballot to let voters decide whether to limit how much landlords can boost apartment rents, according to the Wall Street Journal…(WSJ)
- Orlando rents have risen 35% since March 2020, according to the listings website Apartment List.
- The national average, according to Apartment List, is 22.8%.
So what would the law do? The proposed law would set a maximum increase of no more than the regional change in the Consumer Price Index. the law also has a sunset provision. The rent measure would expire after one year, and voters would have to vote again to renew it.
Orlando has seen rents increase at the fastest pace in the city’s history and is close to the top for the country so you can see why commissioners are feeling the pressure to act. However, whether or not they have the authority to act is up for debate. Obviously, the county commissioners believe they can do this. However, two real estate trade groups filed a lawsuit arguing the ballot proposal violates state law and shouldn’t be put to voters. Florida law mostly prohibits price controls on rent. But, of course, there is a loophole. If Orange County can prove it is facing a housing emergency the commissioners could move forward with the vote.
Orlando is not alone The journal reported back in March reported that lawmakers across the U.S. are looking to enact rent control. Rents, since then, are up 5-6% nationally.
Just one problem. Rent control doesn’t work. Like most economic ideas that involve cntral planning it feels like it should work and help those in need. However, when you look at the results, it tends to to do more harm than good. Brookings back in 2018 looked at a new study on rent control. The study found that while rent control appears to help current tenants in the short run, in the long run it decreases affordability, fuels gentrification, and creates negative spillovers on the surrounding neighborhood. Let’s hope the people of Orlando vote this down for their sake.
