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New law in Sacramento aims to preserve cheap housing units

Do you know what moves the Golden State forward? The economy has gone from producing gold to agriculture to almost everything. So, is there one factor that matters most? It appears that housing is not only the greatest promise in California's economy but also the greatest need.

"We have to address the issue of production in the state of California," the governor said, adding a colorful phrase for emphasis. "We need to build more damn housing."

This comment came as California made one of the biggest changes to real estate law in years. The statute limits rent increases to 5% per year plus the rate of inflation, as well as placing limits on legal evictions.

Some activists do not believe the law goes far enough to help keep people under roofs. It appears to some that the short housing supply will create demand crunches whether or not there are price guarantees for Californians who already have homes. Either way, more construction companies will be working harder than ever before to produce new units in many of California's cities and towns.

Builders trying to keep up with the housing boom may find gold at the end of the rainbow on the West Coast. But contractors and their employees may need some extra expertise on the changing legal landscape as the state tries to work out where new housing units can go.

An attorney can help construction companies succeed in the marketplace with good legal advice and protection from lawsuits and other challenges to their work. Every contractor should have that help ready.

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