Inglewood Adopts Rent Stabilization as Affordability Issues Rise

The City of Inglewood has adopted a short-term rent stabilization policy as a response to a housing shortage and rising home costs in the market. The Inglewood City Council voted to pass a temporary ordinance that will cap rent increases at 5%. The ordinance will last 45 days, and in the interim, the City Council will discuss whether to extend the ordinance for a year.

Greg Brown, SVP of government affairs for the National Apartment Association, attributes the new ordinance to a lack of housing supply and “burdensome” construction regulations that create high barriers to entry in the market for new development. “It is not because of new rail lines or an NFL stadium,” says Brown. “Politicians frequently use rent control as a quick fix, but the real solution is more complex and includes streamlining regulations to help ease those barriers to construction.”

Inglewood has a severe housing shortage, and has seen little new construction activity. Brow, however, says that this new policy will only exacerbate the problem. “Inglewood is already far behind where it should be to meet its housing requirements,” he says. “The city has only constructed 84 units by year six of the plan—of those 84, just 40 were affordable—and must build 929 more in the next three years, which is nearly impossible. Rent control ensures the city won’t meet that goal by preventing cities from attracting the investment in new rental housing construction It’s a quick fix that elected officials use to try and help lower-income renters, which is regrettable, as these same residents are often the victims of rent control’s squeeze on housing supply.”