Also rent control in SF caps rent price increases to 2%, which is the same rate that a building increases in market value. That’s courtesy of prop 13 that says (in effect) that for tax purposes building valuation cannot be assessed at greater than 2% increase a year. Given a large part of income is determined by cost of living, wages have to increase at the same rate as property value.
If the taxable value of property increases at a lower rate than the actual market value of that property then all services that are functionally paid by tax dollars start consuming a greater portion of total tax revenue.
That means a landlord who is increasing their rent/lease by more than 2% is getting a tax payer subsidy as they are using services (roads, utilities, etc) which have costs that increase at market rates, but the landlords aren’t paying taxes at market rates.