Had a rent control bill under consideration by Oregon legislators been in effect 10 years ago, Salem-area rents could have grown 35 percent higher than they are today.

Average rents for a 2-bed, 1-bath apartment in the Salem area rose from $594 in 2009 to $914 in 2018, according to the latest available data. But if the increases allowed in Senate Bill 608 were applied, those same apartments could have risen to $1,238 by 2018.

The same is true for Portland, where rents could have grown 31 percent higher.

Under SB 608, Oregon Democrats are pushing to limit annual rent increases to 7 percent plus the annual consumer price index, a measurement of the change in consumer good prices. The bill also would ban no-cause evictions for month-to-month tenants.

In only one of the last 10 years was the average rent increase actually higher than the proposed cap in SB 608. In 2016 the average rent in Salem rose 18.26 percent; had the cap been in effect, it would have allowed a maximum increase of 8.3 percent.

Behind the 7-percent plus CPI limit is a compromise between business and tenant interests.

"I think where 7 percent came about was: let's look at how rents have moved over the last couple years, what's a reasonable rate of return if you're a business owner," said House Speaker Tina Kotek, D-Portland. "We felt like at 7 percent plus CPI you could address a lot of concerns and also provide predictability for the tenants."

Proponents say the cap will stop price gouging while also allowing for new construction.

Opponents say the bill could scare investors away from Oregon's housing market and cause a deeper shortage with higher rents.

Rent by the numbers

To illustrate what 7-percent plus CPI growth could look like in the Salem-Keizer area, the Statesman Journal examined average rents dating back to 2009, using a 2-bedroom, 1-bath apartment built before 1990 as a guidepost. Apartments built before 1990 were used because the proposed law exempts properties built in the last 15 years.

Rents for that unit type increased from an average of $594 in 2009 to $914 in 2018, according to data from SMI Commercial Real Estate, LLC in Keizer.

6 cities sue:Oregon stormwater rules will hike fees for ratepayers, home buyers

However, if landlords had increased rents annually by 7 percent plus CPI from 2009 to 2018, the same apartment would on average cost $1,238, about 35 percent higher than the real 2018 average.

SB 608 calls for landlords to use the CPI published during September of the previous calendar year to calculate maximum annual rent increases.

For example, in September 2011 the CPI was 3.0 percent; adding that to the 7 percent allowed by the proposed law means the 2012 average rent in the Salem-Keizer area would have been allowed to rise 10 percent to $744, from $676 in 2011.

Rents for a 2-bed,1-bath unit have risen at an average annual growth rate of 5.03 percent in the Salem-Keizer area. In the Portland-Vancouver metro area, the rate was 5.38 percent.

Rent control:Senate Dems push Republicans aside to advance their first priority bill

In the Portland-Vancouver area, rents for a 2-bed, 1-bath apartment rose from an average of $745 in 2009 to $1,187 in 2018, according to data from Multifamily NW, a rental housing association that opposes SB 608.

Under a growth rate of 7 percent plus CPI from 2009 to 2018, a 2-bed, 1-bath apartment could have risen to $1,553 today, 31 percent higher than the real 2018 average, according to the Statesman Journal analysis.

Bill aims to stop price gouging

In downtown Portland, Andy Mangels, 52, was recently given notice his rent would more than double from $750 to $1,600 after his building sold to a new owner.

"There was no negotiation on their part," Mangels said.

He and his husband, Don Hood, 61, a veteran who is also disabled, face eviction in April and are now on the hunt for a new home. With the money available to them, they could possibly afford a one-bedroom house.

One option to find housing is looking outside Portland, but that means paying more not just for rent, but also gas and time to get to work.

"It's appalling that landlords have complete control over people's lives in such an unchecked way in Oregon right now," Mangels said.

SB 608 seeks to address housing instability for renters by preventing extreme rent increases and no-cause evictions, said Alison McIntosh, spokeswoman for the Stable Homes for Oregon Families coalition.

No-cause evictions and extreme rent increases create instability for renters, which in turn wreaks havoc in communities, she said.

Multifamily NW Executive Director Deborah Imse told lawmakers this session the bill may have no effect, but could also cause housing to become less affordable long-term.

Advocacy group Portland Tenants United wanted lawmakers to limit rent increases further and give local governments more control, as different areas in the state are experiencing different housing situations.

"We do not feel that this bill is sufficient at all to address the rental housing crisis," Soren Impey of Portland Tenants United said after the bill's first vote. "We believe that it's a step in the right direction."

The bill passed the Senate Tuesday with 17 in favor and 11 opposed. It now goes to the House.

—Connor Radnovich of the Statesman Journal contributed to this article.

Andrew Selsky of Associated Press contributed to this story.

Contact Jonathan Bach at jbach@statesmanjournal.com, call (503) 399-6714 or follow him on Twitter @jonathanmbach.