Two recent opinion pieces on rent control and stabilization failed to state a clear economic reality: Any short-term fixes to the housing crisis in Santa Barbara must be combined with policies that encourage the construction of additional housing units. This course of action will expand the supply available, allowing the individuals who work and contribute to the Santa Barbara community to live in Santa Barbara. The additional building should start as soon as possible.
The two opinion pieces, “ Rent Control Will Harm the Poor ” and “ Rent Stabilization Is a Necessary Tool ,” discussed the imposition of price controls on the market for tenant-occupied housing, also known as rent control. Neither piece was an adequate explanation of the situation or of effective solutions. More importantly, each suffers from a lack of understanding of the incentives of both renters and landlords.
Santa Barbara’s housing stock is both naturally and artificially constrained. The natural constraints are federal land — Los Padres National Forest — and the Pacific Ocean. The artificial constraints have happened for a multitude of reasons, such as zoning, projecting an image of environmentalism, and individual classism about where to live and who to live next to. People's desire to not live near individuals of different socio-economic status who serve their food or maintain their property has a long history in this country. In addition, there are also resource constraints, especially water. However, these constraints can be overcome with innovation, investment, and proper pricing.