San José, California's third most populous city, regulates rent increases for older apartment units through its Apartment Rent Ordinance (ARO). To help inform policy deliberations by the San José City Council and Housing Department staff, this report analyzes demographic characteristics of ARO tenants, characteristics of ARO apartments, compares ARO allowable rents increases with Rent Stabilization Ordinances in other cities, analyzes the debt-service pass-through, and financial outcomes of ARO rental properties.
Inadequate housing takes different forms, all of which are detrimental to the well-being of families and individuals. The most prevalent problem is housing that costs more than households can afford to pay. The causes include a housing inventory that has grown slightly less than the population and renter incomes that have increased much less than the cost of housing.