By Taxpayers Association of Oregon
Oregon and Portland passed one of the nation’s toughest and most bureaucratic rent control laws.
Here is what happened.
• Some places in Oregon saw rent prices increase double digits others increased 46%.
• Rental properties went down 14% as landlords left the Portland market.
Because rent control failed, the lawmakers are back for more.
Senate Bill 611 is up for a hearing. SB 611 caps annual rent increases at 3% plus inflation or a flat 8% — whichever number is lower. SB 611 also increases the amount landlords owe tenants in cases where the renter is evicted due to landlord-initiated circumstances such as demolishing, remodeling or selling the property itself.
When inflation spikes (like the recent 8%) and taxes go up (Oregon among the highest taxed states), property owners can lose the ability to stay afloat. Furthermore, when politicians pass more rules and red tape on landlords,many are forced to go to rental agencies to help them navigate the bureaucracy. This adds to the cost of renting and is reflected in the cost. This is why Portland prices went up. This is also why some landlords leave the business entirely, which reduces supply, which in turn increases the price.
If only politicians knew that they are making everything worse — higher rents, less profitable small businesses, fewer choices, more bureaucracy, more distance between landlord and tenants, etc.
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