Oregon OKs Approves 1st Statewide Rent Control Policy in the U.S.

Share On Social!

Oregon state leaders recently gave its renting residents greater peace of mind when it comes to housing security.

The 13.1% Latino state became the first in the nation to pass a statewide rent control policy. It also makes it harder for landlords to evict tenants without reason.

“This bill is a critical tool for stabilizing the rental market throughout the state of Oregon,” said Oregon Gov. Kate Brown, according to The Oregonian. “It will provide immediate relief to renters struggling to keep up with the rising rents in a tight rental market.”

Policy Specifics

Landlords across the state now can raise rent no more than 7% per year, plus the annual change in the consumer price index. However, the law does exempt rental properties that are less than 15 years old.

Landlords also must cite a reason for an eviction. In some cases, they must give a 90-day notice and pay tenants a month’s rent.

The policy took effect Feb. 28, 2019.

Many residents have testified in favor of the legislation. They described anxiety and hardship in the face of higher rents.

“It makes it easier for Oregonians to stay in their homes,” Sen. Shemia Fagan said on the Senate floor.

The Effect on Latinos

Oregon’s new law should benefit local Latino renters.

In the U.S., impoverished Latinos and African Americans face higher risks of eviction than other racial groups.

Recent studies from the Eviction Lab found that Black and Latino women with low-incomes were evicted at alarmingly higher rates than other racial groups. Contributing factors included factors such as having children, low wages, and landlord-tenant gender dynamics.

More than half of Latinos (54%) rent their home. That’s nearly twice as much as Whites (28%), according to Pew Research Center.

Latino and Black neighborhoods are targets of the sub-prime lending industry. Renters have been lured into securing bad mortgages, and homeowners were encouraged to refinance under riskier terms. Later, financial crashes lead to more disparities in wealth.

“Between 2007 and 2010, the average white family experienced an 11% reduction in wealth, but the average black family lost 31% of its wealth.” Sociologist Matthew Desmond Wrote in The Gaudian. “The average Latino family lost 44.7%.”

Housing Costs Affects Latinos

More than half of Black and Latino households in major cities across the country are rent-burdened, meaning they spend more than 30% of their incomes on housing.

Fifty years after the federal Fair Housing Act banned racial discrimination in lending, African Americans and Latinos are routinely denied conventional mortgage loans. Instead, lenders offer rates far higher than their White counterparts.

Worse, U.S. housing is at its least affordable in 10 years, according to a recent report.

Lack of affordable housing has strong implications for many Latinos and greatly impacts their quality of life.

Oregon’s new law could set the stage for other states to enact rent control policies.

Support for state rent control is building in Colorado, Illinois and New York, according to governing.com.

“PolicyLink argues that rent control is the quickest and most efficient way to remedy affordable housing issues,” J. Brian Charles wrote for governing.com. “The key is broader enforcement — regulating as many units, including single-family homes put on the rental market, as possible.”

Read more on creating affordable housing for Latinos!