Rent Control in Santa Cruz

According to research, the researcher finds that most of jobs offers in Santa Cruz are cashiers ,farm workers, cooks and waiting table which people almost offers about $ 23500 in a year. In further, the average home prices rose to $ 800, 000 and continued to rise to over $ 1 million in the 2016. Meanwhile, the rent costs increased to $ 2500 per a month, which is extremely high compared to the capabilities of most working class residents who earn as low as $ 10 per hour (Brinklow Para 4). Consequently, people have been evicted from their rental houses due to they cannot pay for the rental on time. Real estate researchers report that it would cost 115% of the wages earned by workers in Santa Cruz to buy an average home (Weir Para 6).

77 per hour in order to afford two-bedroom apartments in this city (Weir Para 5). Even the National Low Income Housing Coalition considered the income requirement for rent as an ‘out of reach’ target since the minimum wage in the nation is currently $ 10 per hour. However, Santa Cruz has the highest proportion of rent to salaries in the United States. According to the Zillow study presented in the Wall Street Journal mentions that Santa Cruz’ average rental prices are 9. 4 times the average income (Brinklow Para 7). Thus, raising the minimum wage rate for workers was the key factors to prevent the social crisis about housing. However, raising the wage rates has not achieved to workers in Santa Cruz. Some people suggests that building more homes in Santa Cruz would attract more residents in the area which can lead to the generation of high-income levels through taxes (Weir Para 15).

However, the housing problem will still remain a problem for the low-income groups. The new immigrants will have high demand for housing and they have plenty of money to afford the houses. For example, the high season in Santa Cruz almost in the UCSC starts classes, because some of students move out from university hall and lives outside the university. At this time, the rental price normally higher than other time. However, from October to May, the rental price has fell down due to the group of student normally find the apartments. Typically, in order to stable housing markets and fair prices for tenants, it should have legislations to ensure that both parties experience fair market conditions when it comes to housing.

As a matter of fact, rent controls do not necessarily imply that rental rates will be kept low. For instance, the policies have to determine the minimum rent for low-income families (Patton Para 3). In this case, the average incomes of the eligible families and the forms of housing that can be offered at minimum rates have to be specified. The houses may be categorized based on their type and size. The categorization in such categories will ensure that all members of the society are considered. The stratification should further consider the possible eligibility of the majority of the members of the society. As suggested by most government officials, it will be critical for the Federal Government to tie permanent price controls and take housing programs out of the speculative markets.

Therefore the government has to formulate fair housing guidelines intend to make housing affordable to all groups in the region. On the other hand, while ensuring that the landlords’ share of the rent is fair enough to meet their mortgage obligations. Other strategies such as building more houses and imposing transfer taxes may only be helpful in the enforcement of rent control but cannot sustain for a long time. In this case, the rent prices will not exceed the specified levels, even if the demand for housing rises. According to (Richards) perfect example of a region where rent control has worked perfectly well is Netherlands. As part of the broader government policy to improve the price of the basic needs, controlling the rent rates has proved to be a perfect model.

The Dutch government through their well established policies has managed to control the rent index and set the most appropriate interests rates for rent. According to the reports, this form of government initiative has proved not only perfect but also the best in improving the overall understanding on how the management of the rent rates operates across the globe. Overall, the price and rent rate series in Netherlands has provided one of the perfect pictures on how a nation may achieve growth and development in the housing market. According to the organization executive director, the government have done quite little to provide the right number of houses that may accommodate the increased number of tenants. By carrying out this approach, it is believed that most of the poor and vulnerable members of the society will be provided with the opportunity to access the cheap and affordable houses.

Furthermore, such form of initiative will not only help the government to care for these members but also to stabilize the economy. Albouy in his work believe one of the main reasons for the need of rent control is to promote the tenant stability. As stated in the above scenarios, it is notable that most of these tenants are poor and vulnerable hence may not be able to meet the turf economic times. , Piet Eichholtz, and ThiesLindenthal. "House prices and fundamentals: 355 years of evidence. " Journal of Money, Credit and Banking 45. Brinklow. "Hold the Phone: Santa Cruz is California's Least Affordable City?" Hold the Phone: Santa Cruz is California's Least Affordable City? | California City News. " About Me. N. p. Web. 01 Mar. Web.