Laserfiche WebLink
REDWOOD CITY 9212 <br /> <br />Economic & Planning Systems, Inc. 15 Redwood City Housing Impacts <br />Table 4. Redwood City Housing Stock Exempt from Rent Control <br /> <br />Source: 2025, ACS, 2024 5-Year estimate, Costar <br />As noted in the literature review section, research indicates that rent control may <br />incentivize some landlords to sell off units. Single family homes and <br />condominiums are most likely to be sold in response to rent control since they are <br />the easiest to convert to for-sale (converting multi-family units to ownership <br />generally involves a more time-consuming and complex process from both legal <br />and financial perspectives). <br />However, since single family units and condominiums are currently exempted <br />from the rent control portion of the proposed Ordinance under Costa-Hawkins, <br />they are likely to be less impacted by the proposed Ordinance. This is because <br />rent usually represents the most important factor in the financial calculus of an <br />existing or prospective landlord. Moreover, the failure of a tenant to pay the rent, <br />or a legitimately imposed rent increase, is a just cause for eviction under the <br />proposed Ordinance. That said, managing the coverage of these units will require <br />staff time, as discussed further in Chapter 5. <br />Single family attached and detached homes account for 28 percent of Redwood <br />City’s rental housing stock. If Costa-Hawkins is repealed and the proposed <br />Ordinance leads landlords of single family or condominium units to sell their <br />rental properties, it could result in a material reduction in the City’s rental supply. <br />Over the long-term, this phenomenon could decrease overall affordability in the <br />rental market by reducing rental supply. Conversely, this phenomenon would also <br />increase home ownership opportunities for more affluent households. Because <br />Costa-Hawkins currently exempts single-family homes from local rent control, the <br />scale of conversion is likely to remain relatively limited. Recent statewide efforts <br />to repeal Costa-Hawkins have failed, and no repeal measure is currently pending. <br />Since the proposed Ordinance also covers Accessory Dwelling Units (ADUs), it <br />could potentially affect the role these units play in the housing market. Research <br />indicates that about half of the State’s new ADUs serve as income-generating <br />rental units, while others provide low- or no-cost housing for family members or <br />additional living or office space for property owners. ADUs may be exempt from <br />rent control depending on their date of construction and other applicable <br />exemptions; however, some existing ADUs may be covered by the proposed <br />Housing Type Amount <br />% of Total <br />Housing Stock <br />% of Rental <br />Housing Stock <br />Total Units 33,516 100% <br />Renter Occupied 16,168 48%100% <br />Multifamily Built 1995 or Later 5,259 16%33% <br />Single Family 4,569 14%28% <br />Nonexempt Units 6,341 19%39% <br />8.A. - Page 143 of 168 <br />153