Published in the Independent Newspapers Peninsula editions on August 16, 2000

San Mateo County apartment dwellers reel from most recent rent increases
Officials, property owners debate rent control possibility

By Jennifer Pearson Bonnett

It's no secret that skyrocketing rents are driving residents from this county.

More and more are seeking apartments elsewhere, only to face long commutes back to the area where they work but couldn't afford to live. In a report released earlier this month, rents from San Jose to San Francisco shot up dramatically in the last three months. In San Mateo County, alone, rent increased 19 percent while the vacancy rate fell .8 percent, according to RealFacts, a Marin County-based real estate information service that tracks Bay Area apartment rental data. Renters' horror stories range from an annual increase of $100 and $300 to as much as double he original price paid when the lease was signed. While some residents are seething, others are pitching the idea of rent control.

Gina Pereda and her son have moved all over the county seeking a more affordable place to live. The two are currently renting a Daly City house with two roommates for an undisclosed amount.
"I feel that there is no way anybody can live in this county and eat at the same time. I know I can't survive down here anymore, and it's just getting worse," she said, adding that she's rented rooms and apartments in countless county cities. "I keep going further out of the area. Now
my commute [to Redwood City] is 45 minutes each way. I'm taking away time I can spend with my son, and a lot of that is because of the cost of living. "In San Mateo County, a two-bedroom apartment is currently averaging $2,499, according to an Aug. 7 search on Metro Rents. In February, the same rental was on average about $1,344.

In apartment complexes with 50 or more dwelling units, the average rent being asked of new tenants for a one bedroom, one bathroom is $1,548, according to RealFacts. Supervisor Rich Gordon, who has spoken out about cost of living issues in the past, said the issue of rising rents is evident across the county. "You have to be living in another country to know that our rents aren't rising," he said, adding that he knows people who have had to move out of San Mateo County because of increasing rents. "There are some people who can't afford to live here."
That's Pereda's story. "Rents keep skyrocketing, and it's not worth it to live here anymore," she said. "My salary has increased, but it can't keep up with what I have to pay in rent. You can pay $1,200 a month and not even live in a good area. "Although the latest reports are the most disheartening, rising rents are nothing new to county residents.

Earlier this year the Peninsula Interfaith Action group, made up of 21 Peninsula and Santa Clara County religious entities, claimed that rent had increased 38 percent over the last three years. And, RealFacts reported that rents rose much faster in April, May and June than they did in the first three months of the year. For example, rents increased a mere 6 percent in this county from January to March.

Finding a place to call home
As if rent is not a costly enough problem, scarcity of apartments is also hitting local counties.
The Tri-County Apartment Association -- a nonprofit organization that serves the rental housing industry in three counties including San Mateo -- believes there is a shortage of rental units.
"We are advocating an increase in supply," said Laurie Santos, communications director. "We do see in the pipeline that there is land available. We are urging cities to fast track housing developments."

One recent report claimed that of the 10,000 units in Sunnyvale in Santa Clara County, there were only three vacancies in late July. Similar figures were unavailable for San Mateo County.
And, a report released by the state department of housing in May revealed developers and builders produced 2.8 million new housing units --- including apartments, houses and ondominiums -- from 1980 to 1997, one for every three new California residents.

During the 1980s, production in Marin, San Mateo and San Francisco counties lagged demand growth by 28,000 units, according to the report. Between 1990 and 1995, very few apartment units were built in the entire Bay Area which resulted in the first wave of rising rents, according to RealFacts.

Today, there are an estimated 150,000 rental units in San Mateo County, according to one Burlingame Real Estate office. Of those, an estimated 20,000 are complexes with 50 or more apartment units, according to a June 2000 survey by RealFacts.

The rising cost of living coupled with the lack of housing is driving many residents -- even city officials and civic employees -- out of this county, including Atherton Mayor Nan Chapman who reportedly resigned this month because she could not find an affordable place to live. Burlingame is another Peninsula city having a hard time filling positions at City Hall, according to Vice Mayor Joe Galligan. "[Applicants] have to look for a place to live far away because they can't afford to live here. It's a huge issue," he said. "People are commuting from Tracy to get here."

Rent control a solution?
While some county residents think the idea of rent control set by each city could solve rent increase issues, property owners and city officials offer a different viewpoint. A practice currently used by both nearby San Francisco and East Palo Alto, rent control locks in the price renters pay for buildings constructed prior to a particular date. Ultimately, rent control, which
was instituted in East Palo Alto 15 years ago, does not allow rent above the consumer price index.

There are currently only 14 California communities including Berkeley and a handful of Southern California cities with apartment rent control ordinances. It's something one resident wishes would be enacted in the city she resides. "I think rent control is something that needs to be done here," said Pereda, a Daly City renter. "People's rent [in this county] goes up $100 every other month. I don't understand why we don't have it. "This is a great place to live, but it's not worth it anymore. Our wages can't keep up with what we have to pay. "Real estate agent Ross Bruce of AVR Realty, whose Burlingame office manages 450 to 500 units there and in San Mateo, said he would hate to see rent control here because of what it does to property. "What studying I've done, I've found that those who have rent control are less likely to take care of their buildings," he said. "I think there are much better market-driven solutions, possibly zoning or an increase in building. I think if we adopt rent control, buildings will go unpainted and that is not a good thing for communities."

As a county official, Gordon said he is also generally opposed to rent control. "I think that the problem is far better served when you come at it from increasing the supply. Government's role should not put rent control in place. Historically, here, there has not been a sentiment for rent
control [for the county]." One official in Burlingame, where an estimated 52 percent of the approximate 13,032 dwellings are rental units, also doesn't believe rent control is the answer.
"To be honest, it's not something I've ever been approached with in Burlingame," Galligan said. "I think rent control does upset free enterprise because of ownership of properties. I think there would have to be long, hard discussions.

"I could understand why the question [regarding rent control] is now being asked, but it's the whole housing industry, not just people who rent. How do you control what someone can sell their house for?" Another option for gouged renters is mandating construction of more so-called affordable housing. Earlier this year, PIA called on supervisors from both San Mateo and Santa Clara counties to make affordable housing a reality. The group is lobbying local officials to build 1,250 affordable housing units per year.

Gordon, one of the San Mateo County supervisors who heeded PIA's call, said there must be adequate affordable housing. "We're talking about nurses, teachers, fire fighters, folks who work in our service industry. I think those people suffer the most but could benefit the most from affordable housing, including affordable rents," Gordon said. "I think there is possibility for more affordable housing along the transit corridor."

In the meantime, groups such as the Tri-County Apartment Association, which also serves landlords in Santa Clara and Santa Cruz counties, are advocating for smoother transitions for inevitable rising rents. "We've recently sent out communication to our members encouraging a
couple of things," Santos said. "If they are increasing rent, we encourage them to use moderation. Additionally, we advocate that landlords give 60 days notice before raising the rent." For Bruce, the bottom line is supply and demand.

"We've got a problem. We quite frankly have too many people who want to live in this place, but rent control is not going to solve it," he said, adding that renters come and go on a regular basis. "There's a lot of turnover here. If you don't want to pay it, the 12 people behind you will. "The people complaining about paying the highest rents came in last month or today. And if we had rent control, they would be paying market value anyway. Rent control is not going to help them."