Milwaukee residents know firsthand that many cities in this country are facing an affordable housing crisis. The California legislature has recently taken major steps to address this problem. In addition to providing other protections for tenants, California’s Tenant Protection Act of 2019 has limited annual rent increases to 5% plus inflation for the next decade. This legislation was enacted on January 1, 2020, making California the second state to institute a statewide cap on rent increases.

Whether or not this is the best way to solve the affordable housing crisis is debatable. On the one hand such a restriction seems to oppose free-market ideals by limiting landlords’ incentives to invest in housing. Furthermore, although capping rent increases may provide many people with a relatively expedient solution to unaffordable housing, it does not address all the root-causes of the crisis and may even make the problem worse in the long run. In this regard, the cap may be likened to giving a person a fish rather than teaching the person how to fish.