New US rent regulations, like California’s, seen eroding apartment values

Rent caps are starting to put pressure on apartment-building prices in the country’s most-expensive real estate markets.
Multifamily properties in states where lawmakers this year have passed tougher restrictions on rent growth are seeing their value erode as investors demand higher returns for the risk of owning the apartments. Capitalization rates — a measure of investment yield that rises as prices fall — climbed in the second quarter in New York, California and Oregon, all