California Rent Control and Student Debt

The state of California now has rent control. Governor Gavin Newsom signed into law this month a measure that caps rents throughout the state. The law limits annual rent increases that Landlords can enact on Tenants in the state to 5% plus the local rate of inflation. As with any new law, there is some fine detailed print with some exceptions to this law (call for more details). Also included in the law is an added layer of protection to Tenants that will require Landlords to show "just cause" when evicting tenants. Historically low rates continue to bolster California home sales. The sale of existing single-family homes in September grew 5.8% when compared to 12 months ago and it marked the 3rd consecutive year-over-year gain. California's unemployment rate has fallen to a new era low of 4% providing more evidence that the state has all the right fundamentals of a strong economy. Younger generations are continuing to save money and borrow money from family members to realize their homeownership dreams. Student debt continues to be the elephant in the room when it comes to the younger generations looking to buy a home. To put things in perspective, total student debt in the U.S reached $1.5 trillion according to a new study by realtor.com. To give this figure meaning, $1.5 trillion is enough to buy every single home on the market in the U.S twice according to Kelsey Ramirez with HousingWire Magazine. As the holidays approach the talk of real estate and housing is always brought up at family and friends gatherings. Keep me top of mind as your referral expert resource when family and friends bring up the idea of buying or selling real estate this holiday season.