ACTION Apartment Association - Wall Street already jittery about possible expansion of rent control in California

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Wall Street already jittery about possible expansion of rent control in California

Wall Street already jittery about possible expansion of rent control in California

08/31/2018 1:19 PM | Margaret Fulton (Administrator)

The mere possibility that California’s ban on rent control could be repealed is making Wall Street investors and landlords jittery.

Earlier this month, analysts from SunTrust downgraded Equity Residential (NYSE: EQR) from "buy" to "hold" based in part on Proposition 10, a California ballot initiative that would give cities more leeway to adopt rent new control policies. Close to half of Equity Residential’s portfolio is in California and there is “essentially nothing priced into the stock” to address the uncertainty, according to the SunTrust report.