A narrow municipal rule that forces initial leases to be unfurnished, for at least a year, and only to primary residents can make short‑term or furnished rentals uneconomic and encourage landlords to sell properties rather than keep them as long‑term rentals. That one odd clause, combined with low dollar rent‑increase caps and onerous owner‑move‑in rules, creates predictable supply contraction in tight housing markets.
— Local regulatory minutiae can have outsized, counterintuitive effects on housing supply and should be central to debates over rent control, landlord behavior, and affordability policy.
Alex Tabarrok
2025.12.02
100% relevant
Santa Monica rent‑control and just‑cause law requires initial unfurnished one‑year leases to primary residents and caps increases by a low AGI amount — cited by YouTuber/investor Graham Stephan as the reason he is selling a home rather than renting it.
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