Today I write to report on the activities that the Gazarian Real Estate Center has done since our previous newsletter from June 2019. We also have a few events in the workings, so I will give you some brief teasers for you to keep in mind. Altogether, we are staying busy and excited about the wonderful things that the Gazarian Center has been able to accomplish, and all because you are there to support us. Thank you!
We started this Fall 2019 semester with our most ambitious project so far. On September 19, for the first time in the Central Valley, we hosted the “First Tri-City Real Estate Tour.” This was a project planned and executed with support from the Craig School of Business, especially Cara Peracchi Douglas, our Director of Development. As part of the mission of the Gazarian Center to promote investment opportunities and industry information, we gathered more than 120 professionals into three buses, and toured them around developments in the Cities of Fresno, Clovis, and Madera. We had a blast! The buses followed predefined routes in different directions, hitting the most interesting and upcoming real estate developments in the area. All buses stopped at three locations: Ulta Beauty Distribution Center, Riverstone, and Tesoro Viejo. In each of these places, we received guided tour of their amazing facilities. A few buses also drove-through by downtown Fresno, downtown Clovis, and visited the Clovis Medical Center Park, the Emerson Apartments, and DeYoung EnVision Community. We ended the tour with a “farm-to-table” themed reception, where we served appetizers and Fresno State wines. We would like to thank all our sponsors, especially our reception and presenting sponsors Home Bay Equity Loans and the City of Fresno, for their generous contributions and support. We already look forward to the next real estate tour!
Our next event took place on November 4. One of our Gazarian Center Advisory Board members, Robin Kane, Vice President at Mogharebi Group, was interested in hosting an event on the recently approved state bill “AB 1482 Tenant Protection Act of 2019.” We gathered a panel of local experts to discuss and provide answers on the bill’s implications and potential effects. Robin moderated the two-hour session. The panelists included Jack Schwartz, a real estate lawyer from Hansford with many years of experience in the Bay Area, Michael Goldfarb and Adam Goldfarb from Manco-Abbott Inc, representing the property management sector, Greg Terzakis, Central California Senior Vice President for the California Apartment Association, and Rick Ginder, from Ginder Development Corp, representing the investment sector. This event was well attended and everybody left with a good understanding of how AB 1482 will affect their businesses.
We are also working diligently to prepare for next year. We already have two events scheduled for early Spring 2020. First, in partnership with the Community Housing Council of Fresno, we will co-host the “3rd Annual Real Estate Summit” on January 22, 2020. In the past, this event has attracted real estate agents and local investors. Next year, it will feature speakers from the construction and development areas as well as updates on the state of the real estate economy. If you would like to hear more about this event and/or sponsor it, please contact John Shore, Director of CHC at firstname.lastname@example.org.
On February 14, 2020, we will have the pleasure of listening to one of the most regarded labor and urban economists in recent times. The Gazarian Real Estate Center is collaborating with the Department of Economics in the Craig School of Business to host Dr. Enrico Moretti, the Michael Peevey and Donald Vial Professor of Economics at the University of California, Berkeley. His book “The New Geography of Jobs” has been praised as a masterpiece of modern urban economics. Dr. Moretti will join us to discuss how cities like Fresno and Clovis face economic challenges and how policymakers can use their influences to provide solutions to improve the lives of their citizens.
If you are interested in attending and/or sponsoring our events, please do not hesitate to contact us at email@example.com. We really appreciate all your help and support! Also, please let us know if you have any suggestions for this newsletter. We will be happy to address your specific interests.
Curbing Runaway Rents:
Assessing the Impact of a Rent Cap in California
In this brief, we assess the potential impact of the most recent version of the statewide rent cap proposal, with a particular focus on 10 case study areas from across the state. We find that if passed in its current form, AB 1482 would extend price protections to millions of households, primarily by reaching renters in communities that do not already have rent control and tenants in single-family homes (although recent amendments on eligible properties will most likely limit the cap’s effectiveness for single-family renters, as discussed in more detail below). In addition, we find that in the past five years, all but one of our case study areas had at least one instance where median rents increased 10 percent or more year over year, suggesting that a rent cap could help to limit excessive increases for some tenant’s monthly payments. We also find that, while rents are stabilizing in some communities, new, formerly affordable areas such as Vallejo are experiencing significant upticks in annual rents, showing that a statewide rent cap could have utility in cities beyond California’s major (and most expensive) coastal markets. Finally, we find some evidence that rent increases tend to be higher when a property is sold to new owners, which points to the need for additional strategies to preserve affordable units. While a rent cap alone will not solve the housing crisis, our analysis suggests that if such a policy were passed at the state level, it could help to protect tenants from unsustainable rent increases, at least in the short term.
Read the full policy brief by Terner Center for Housing Innovation at UC Berkeley Here
Here is how California's rent control law will work
Gov. Gavin Newsom signed Assembly Bill 1482 on Tuesday, enacting rent control in California, when “no one thought this could be done.” He signed the legislation—which is designed to guard tenants against the most “egregious” rent hikes—as part of a press conference and housing tour in Oakland. Once the law is in effect on January 1, the state will begin to regulate how much Californians’ rent can increase every year, limiting it to 5 percent, plus the local rate of inflation. The rules, however, will vary for cities that already have rent control laws. The measure will expire in 2030 (unless lawmakers vote to extend it).
Read the full article by Curbed L.A Here
2019 California Housing Market Update
View Full Report By California Association of Realtors
2020 Housing Market Forecast
View Full Report By California Association of Realtors
Data and Statistics
Housing Matters Podcast
The Housing Matters Podcast is your housing hub for market analysis, economic trends, and housing news from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Be sure to subscribe on iTunes & soundcloud to hear the latest episode every other Friday to learn what you need to know about the market from C.A.R. experts who will give you their take on the week’s top real estate stories.
Listen to Housing Matters Podcasts Here
Photos From the First Annual Tri-City Tour