Joseph J. Ori

So far this year, three states, California, Oregon and New Yorkhave enacted sweeping rent control laws in their states. These newlaws cap annual rent increases to inflation (measured by theConsumer Price Index) plus 7% in Oregon, inflation plus 5% inCalifornia and in a convoluted system in New York, the rentincrease is based on the five-year average rent base per the RentGuidelines Board. The new rent control measures in California don'tapply to any newly constructed apartments for 15 years and inOregon, new properties are also exempted for 15 years.

We expect many more liberally run states like Illinois, NewJersey, Maryland, Connecticut and Massachusetts to also enact rentcontrol measures similar to the above three states by the end of2020. As an apartment owner or developer in California and Oregon,you may be fine with annual rent increases of inflation plus 5% or7%.

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