>> CONTROL IN CALIFORNIA, GAVIN
NEWSOM SIGNING A NEW LAW CAPPING
RENT INCREASES IN RENT CAN ONLY
BE RAISED 5% PLUS INFLATION AND
PROPONENTS OF THE LAW SAY IT'LL
KEEP THOSE FROM GETTING SQUEEZED
OUT OF THEIR HOMES AND MOST
ECONOMISTS SAY RENT CONTROL
KEEPS WRITTEN HIGH BY
DISCOURAGING NEW CONSTRUCTION.
CALIFORNIA CONGRESSMAN, GOOD TO
HAVE YOU HERE.
ARE CALIFORNIANS GOING TO REGRET
THIS MOVE?
>> I THINK THEY ALREADY REGRET
IT.
ANTICIPATION OF THIS LAW RENTAL
HOUSING STARTS IN CALIFORNIA ARE
DOWN 42%.
BECAUSE NOBODY IN THE RIGHT MIND
IS GOING TO INVEST MONEY IN AN
APARTMENT COMPLEX WHEN THEY KNOW
THERE IS A GOOD CHANCE THEY WILL
BE FORCED TO ACCEPT LOW MARKET
RATES.
IT IS ALREADY DOING ENORMOUS
HARM THAT IS THREE IN HALF
MILLION OVER THE PAST 15 YEARS
BECAUSE BEFORE YOU CAN STICK A
SHOVEL IN THE GROUND YOU ARE
CHARGED $150,000 A PIECE AND
RESTRICTIVE ZONING LAWS ARE
RESTRICTING THE SUPPLY.
>> THIS IS SUCH A FRUSTRATING
THING, EVERYTHING YOU SAID IS
TRUE.
STATISTICS ARE EVERYTHING, WE
HAVE KNOWN THIS.
ANYONE LIVED IN NEW YORK HAS
KNOWN RENT-CONTROLLED AS A TOTAL
FAILURE.
IF THERE IS ANY FAILURE ON
POLICY AND THREAT CONTROL.
CAN YOU PLEASE PERSUADE YOUR
GOVERNOR THAT HE IS HURTING THE
PEOPLE HE'S TRYING TO HELP.
>> I WISH I COULD, HISTORY IS
CLEAR, WE HAVE TRIED WAGE AND
PRICE CONTROL SEVERAL TIMES 4000
YEARS AGO, THEY VERY
CONSISTENTLY CAUSED A SHORTAGE
OF PRESSURE TRYING TO CONTROL.
THAT'S JUST AS TRUE OF THE
RENTAL MARKET TODAY AND WHY WE
DON'T LEARN FROM THESE MISTAKES
THAT WE KEEP MAKING OVER AND
OVER AGAIN I DON'T KNOW.
>> THE SHOCKING PART, THE
MAINSTREAM MEDIA DOESN'T SEE IT
EITHER.
WHAT IS IT SAY ABOUT OUR SCHOOLS
AND MORE SCHOOL REFORM, TEACHERS
WHO COULD TEACH RUTH SUBJECT.
>> THAT IS THE OTHER PROBLEM THE
TEACHERS UNIT IS NOW RUNNING THE
PUBLIC SCHOOL AND THIS BACK THE
FACT WE ARE SPENDING MUCH MORE
TODAY PER STUDENT WE'RE
DELIVERING A MUCH LOWER QUALITY
OF EDUCATION.
LEFT-WING POLICIES BRING TO
ESTATE, WHAT IS THE WORK IN
CALIFORNIA?
>> THANK YOU FOR JOINING US.
IT SEEMS LIKE THIS IS A WAY TO
APPEASE UNHAPPY CONSTITUENTS
ESPECIALLY BECAUSE YOU'RE
TALKING ABOUT THE HOMELESS
ISSUE.
TENSIONS ARE REALLY HIGH WHAT
OTHER SOLUTIONS ARE THERE WITH
THIS MOMENT IN ORDER TO ENACT TO
BUILD MORE AFFORDABLE HOUSING.
WHAT ARE YOU CONCLUDING?
>> GET THE GOVERNMENT OUT OF THE
WAY.
THAT IS A PROBLEM ALL ALONG.
IF YOU GO BACK TO 1974, THE
AVERAGE MEDIAN PRICE OF A HOME
IN TODAY'S DOLLARS WAS $176,000,
AND A MEDIAN PRICE TODAY IS NOT
176,000, IT'S $544,000.
A MEDIAN PRICE OF A HOME HAS
GROWN SINCE THE 1970s.
WHY, WE HAVE PILED FEET UPON
FEET UPON RESTRICTION UPON
RESTRICTION OF THE HOUSING OF
THE STATE.
THE RENTAL AND SINGLE-FAMILY
RESIDENCY.
THAT IS WHAT IS CAUSING THIS.
YOU GET THE GOVERNMENT OUT OF
THE WAY AND WHEN THEY MOVED TO
THE CALIFORNIA 1960s, THERE
WAS ABUNDANT WITH EVERY INCOME
LEVEL BECAUSE THE MARKET COULD
SUPPLY AT EVERY INCOME LEVEL.
THAT IS STILL TRUE OF THE FREE
STATES AND THE UNITED STATES.
IT IS NOT TRUE OF STATE
DOMINATED BY LEFT-WING POLICIES
LIKE CALIFORNIA.
>> THOSE REGULATIONS MAKE IT
IMPOSSIBLE TO GET ANYTHING DONE.
I THINK THE SAN FRANCISCO AREA,
THEY PASSED A BOND ISSUE WITH
$2 BILLION FOR AFFORDABLE
HOUSING EXPOSURE FOR THE
HOMELESS AND THOUGH SEVERAL
YEARS AGO, 60 UNITS HAVE BEEN
BUILT BECAUSE YOU CAN'T GET
ANYTHING DONE.
>> LET ME WALK THROUGH THESE
NUMBERS, MEDIAN PRICE OF A HOME
IN 1974 WAS $176,000 IN TODAY'S
MONEY, TODAY WE CHARGE $150,000
IN FEES BEFORE YOU CAN STICK A
SHOVEL IN THE GROUND.
>> JUST REPORT, I AGREE GET THE
GOVERNMENT OUT OF THE WAY, LOOK
AT WHERE TRADES ARE WITH
EVERYTHING IN THIS SEGMENT.
THE GOVERNMENT IS GETTING MORE
IN THE WAY, WHAT IS THIS REPORT.
>> IT IS ALREADY BEEN PREACHED
IN CALIFORNIA.
3 MILLION MORE PEOPLE HAVE MOVED
OUT OF CALIFORNIA THEN I MOVED
IN IN THE LAST 30 YEARS.
THE ONLY REASON OUR POPULATION
IS NOT COLLAPSING BECAUSE THE
BABIES INFORMED IMMIGRATION
MOSTLY ILLEGAL.
A LOT OF PEOPLE ARE MOVING TO
NEVADA AND ARIZONA AND I
MARVELED THAT I CAN'T THINK OF
AN ACT OF GOD THAT CAN TURN
BEAUTIFUL CALIFORNIA INTO A LESS