I live in a rent-stabilized (middle class) apartment that raises rents in line with the official October inflation number every year, same as Social Security benefits. For our area, the rents are super good since this has been happening since the 1970s (rent inflation >> general inflation). We pay $964 (up from $951 2 years ago) as compared to places that rent for $1500-$2000 the next building over in the same town with the same bad schools. There's a person here who is retired and makes $200k/yr give or take.
For you, the rents listed probably sound insane. It's a fact of life when you live in the most populated metro area in the US.
What does the rent stabilization do to owners of the property?
Just from your numbers, Unstabilized the rent could be twice as
much which means the property value could be double. I'd hate
to be an owner with the government holding down the price of my rental.
What don't I understand?
It depends on the area.
Some areas, ownership is cheap, and owners are still making money.
Some areas, owners might be getting screwed.
I live in So Cal, and rents here are ginormous right now, and renters are pissed. You constantly here how landlords are screwing people.
Well, it depends.
Some owners have owned for 30-40 years, and Prop 13 means their taxes are $1000 a year, and they don't upkeep the places, and they charge market rate.
Some owners bought their homes in 2006, are under water, and market rate means they are breaking even, or not quite.
Most of the mobile home parks in the area are under some amount of rent control, because they are heavily filled by the elderly, but not all of them. So imagine that a few years ago, one was bought and the owner decided to increase rents to $1000 a month. That was pretty outrageous. I think that park is now half "condo" (mobile home owners bought their space) and half are not. Messy.
Rent control comes with similar issues. Just flipped.