Oakland’s Next Tax Hike is Another Burden on Housing Providers

On the June 2nd primary election ballot, voters in Oakland will decide whether to approve a new parcel tax that would cost property owners $192 per year, per parcel, for the next nine years. The measure is projected to raise roughly $34 million annually to go towards city services like police, fire, and other operations.

At first glance, that may sound reasonable. But for property owners, it means a benefit for the entire city that they alone are forced to fund.  Don't forget, roughly 55-60% of voters in Oakland are renters, which means they can easily approve the parcel tax, and won't have to pay for it. 

What This Measure Really Means

This measure may be a long-term financial obligation for homeowners, but for rental property owners, it's yet another layer on top of an already heavy cost structure. 

Rental housing providers in Oakland are already navigating the increasing costs of:

• Rising property taxes
• Increasing insurance premiums
• Rent Registry Fees, RAP Fees, and the highest business license fee of anyone
• Increasing maintenance and capital improvement expenses
• City Rent Control that caps their annual rate increase to only 0.8% 

Adding another mandatory cost may seem small in isolation, but in practice, it compounds existing pressures that are already squeezing the viability of providing rental housing in Oakland.

In Oakland, the average rent for a two-bedroom apartment (if you remove a small percentage of high-end new construction) is around $1,900 a month. That means a rental owner can only increase rent by $15.20 a month.  That amount won't even cover this new parcel tax, let alone all of the other increasing annual fees and taxes rental owners must pay.

The Bigger Issue: A Structural Problem

The City is relying on property owners to fill a $34 million gap without fully addressing the underlying financial challenges. Oakland’s budget issues are not new. In recent years, the City has:

• Faced revenue shortfalls from failed asset sales
• Increased employee compensation significantly
• Struggled with long-term pension obligations
• Delayed financial reporting due to staffing constraints

Instead of trying to implement some structural reform, this measure shifts the burden directly onto property owners.

And importantly, this is being driven largely by union-backed efforts, which have a lot to gain as these dollars go directly to them. Unions have dumped over $450,000 to ensure the tax measure is on the ballot.

A Growing Concern: Transparency and Accountability

There are also legitimate questions being raised about:

• How the funds will be allocated
• Whether the measure language clearly communicates its impact
• The long-term accountability for how these dollars are spent
• What are the metrics for success

When a tax is proposed for nearly a decade, clarity and trust matter. Right now, many in the housing community are not convinced those standards are being met. Policies like this don’t exist in isolation. They contribute to a broader environment that can:

• Discourage reinvestment in existing housing
• Reduce the willingness to take on new rental housing projects
• Increase financial strain on "mom & pop" and legacy property owners
• Ultimately impact the quality and availability of housing for renters

80% of Oakland’s housing ecosystem depends heavily on small and independent rental housing providers. They are the individuals who maintain much of the city’s naturally occurring affordable housing through sweat equity.

When costs continue to rise without corresponding support or flexibility, that system begins to break down.

Call to Action: Make Your Voice Heard

This measure will be decided by a simple majority vote in the primary election on Tuesday, June 2nd. That means every vote matters.

If you are a rental housing provider, this is the moment to engage.

Speak Up
Talk to your colleagues, neighbors, and fellow housing providers. Many voters don’t realize how these measures impact housing supply and stability.

Mobilize Your Network
Encourage others in the housing community to pay attention and vote "No".

Vote
Make sure your voice is counted on June 2nd

There is no denying the fact that Oakland needs strong, reliable city services. But the solution to force rental owners to bail everyone out cannot continue.

Without thoughtful, balanced policy decisions, we risk undermining the stability of Oakland’s housing market one measure at a time.

Now is the time to speak up.

Chris Tipton is the Marketing & Communications Manager with the East Bay Rental Housing Association. To learn more about joining the largest rental housing association in the East Bay, click HERE. New members can save $100 by using the promo code: RELIEF100