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REDWOOD CITY 9212 <br /> <br />Economic & Planning Systems, Inc. 13 Rent Control Literature Review <br />This discrepancy may be explained by the type of investments being examined. <br />While tenants may have added leverage to request repairs related to basic <br />building functionality and health and safety requirements, landlords may have less <br />of an incentive to make more cosmetic investments or add amenities designed to <br />appeal to new tenants. <br />Other Potential Impacts <br />There are many potential impacts of rent control that have not been significantly <br />studied. A few impacts that have been noted by researchers but have less <br />empirical support include the following: <br />• Sales tax impacts: Sales taxes may be impacted both positively and negatively <br />by rent control. Rent control increases the discretionary income of renters, <br />allowing households to spend money and boost the local economy. Conversely, <br />if rent control were to limit the influx of higher income residents it may reduce <br />the number of households that spend the most money on local services. <br />• Workforce Impacts: A lack of available housing can be a barrier to attracting <br />and retaining employees. While the proposed Ordinance would help existing <br />renters remain in place, it may reduce the availability of housing for people <br />moving to Redwood City. A potential spatial mismatch between employment <br />and worker populations can limit access to jobs.20 On the other hand, rent <br />control and subsequent housing stability may provide economic benefits <br />through reduced worker turnover. Displacement and housing instability lead to <br />absenteeism from work, reduced productivity, and higher turnover— people <br />who experience eviction are up to 22 percent more likely to be laid off.21 <br />• Improved educational outcomes: children who move frequently have more <br />absences and a lower likelihood of finishing school. Reduced displacement can <br />lead to fewer moves for students and as a result, improved overall educational <br />outcomes. Additionally, rent control may help teachers who are rent-burdened <br />to continue in their profession at their local school. This may be especially <br />applicable in Redwood City, where the proposed Ordinance provides special <br />provisions for educators and school-aged children. <br />Demand for social services: The benefits of improving financial stability for <br />renters can be significant.22 All else equal, financially stable households are less <br />likely to need public benefits. As a result, increased housing stability can <br />potentially decrease the need for government spending on food and housing <br />assistance. <br /> <br />20 Four Reasons Why Employers Should Care about Housing | Housing Matters (urban.org) <br />21 Housing and Employment Insecurity among the Working Poor | Social Problems | Oxford Academic (oup.com) <br />22 Thriving Residents, Thriving Cities: Family Financial Security Matters for Cities (urban.org) <br />8.A. - Page 141 of 168 <br />151