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Staff Report for Overview and Discussion of the City of San Leandro's Rent Review Program
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BACKGROUND
This report is for information only. Rents have been on the rise in San Leandro (and the San Francisco Bay Area) over the last year resulting in a higher volume of Rent Review Board hearings. Key features of the City's Rent Review Program Ordinance are outdated and require clarification. To modernize and more effectively administer the Rent Review Program and Board hearings, staff researched the issue and recommends modifications to enhance the Ordinance. After feedback from City Council tonight and further public input, staff will bring back proposed amendments to the Ordinance for City Council review and/or adoption Fall 2015.
Current Rental Market in San Leandro
Like many cities in the San Francisco Bay Area region, San Leandro rents are rising. Average rent in the City increased 32.4% from 2006 through 2014 but was still below the rental growth rate of over 50% for the Bay Area region (see Attachment A). Furthermore, the average rent reached a peak in 2008 of $1,154.00, but then fell in 2010 to $1,086.00 (which was close to the 2006 level) before trending upwards again to $1,377.00 in 2014. When annualizing the City's eight year growth rate of 32.4%, the rate reflects a more modest 4% increase per year.
Key economic factors affecting the recent increase in rents in the City and the region include:
* Under supply of new housing construction. The San Francisco Bay Area region has not built sufficient new residential units for decades to meet its population growth. Consequently, increased demand causes the rents for the limited housing supply to increase. Many local housing markets, including San Leandro's, have not fully recovered from the 2008 recession and many cities are seeking more investment in residential development. State law mandates that all cities and counties in California provide adequate zoning for the develop...
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