A rent control measure returns to the ballot this November, allowing voters to weigh in on the future of California’s housing market.
California cities currently have limits on how much a landlord is allowed to raise the price of rent per year. But these rent control regulations have limits as well. The Costa Hawkins Act of 1995 prohibits rent control from being applied to single family homes and condominium units and new units built after 1995.
Proponents of Prop. 33 hope to overturn this law and expand rent control. The proposition would extend rent control to all types of housing, as well as to first time renters – and put control of rent control in the hands of local governments.
The bill carries particular importance in California, where residents are generally burdened by steep rental costs. Los Angeles County residents, on average, spend about one-third of their income for rent, while the median rent was around $1,805 per month that same year, according to a 2022 U.S. Census report. Compounded by inflation and the higher costs of household items, fundamental necessities can gouge consumers’ pocketbooks.
But could the measure backfire and make living here even more pricey? That’s a key question raised by opponents of the measure, who say that disallowing the state to get involved in rent control could increase rent in some areas. They add that expanding rent control could dissuade potential landlords from renting out their homes and even possibly keep developers from wanting to build more homes — all of which could exacerbate the housing shortage, raise rents, decrease taxes collected on rent and perhaps even require local governments to raise taxes to fill the gap.
Residents interviewed largely agree with Prop. 33’s goal of expanding rent control.
Eden Bly, who lives in Koreatown with her mother, said the soaring costs of housing has put pressure on her family.
“Sometimes we’re behind [on paying rent]. I think we owe our landlord some money” now, said Bly, who is studying astrophysics at Cal State LA. “It adds a lot of stress. My mom has to work a lot, and then when she does have free time, she has to do errands. Sometimes, she has to pawn jewelry just to have some money.”
The allowable rent increase locally is limited to 4% annually as of February 2024, according to the Los Angeles Housing Department states. But legal loopholes, such as the Costa Hawkins Act, contribute to high housing prices.
It would be one thing if higher rental prices led to improvements or new amenities, said Natalie Gonzales, but she said she doesn’t see such changes.
“It was literally just higher rent,” said Gonzales, who works at Starbucks to support herself. “They just kept trying to raise it, keep raising it.”
Further away, in Santa Barbara, Clairessa Paoletti said the price of rent in California has reached uncomfortable heights.
“It’s absurd and borderline unmanageable,” Paoletti states. “I was paying $3,450 for a one-bedroom apartment in Goleta, and had to move out because they raised the rent to $4,200 for a 600-square-foot apartment.”
Santa Ana resident Gillian Palacios, a renter who lives with her family, said the measure is critical.
“The increase in how much we have to pay is insane, which I think is why rent control is so important, because sometimes you’ll see an increase in your rent and you don’t know why. It’s not clear. And I think landlords do take advantage of that, too,” Palacios said.
Palacios, who works as a speech and debate coach, said even if the measure passes, it would still be up to local governments on whether to do anything.
But opponents of Prop 33 warn against banning the statewide mandate, calling it a “Trojan horse” that could overturn over 100 state housing laws, making housing even more unaffordable for renters and discouraging developers from building affordable housing.
Juan Gonzales, a human resources director from San Fernando Valley, said he doesn’t see affordable housing being built but whatever the state loses in taxes from new housing construction, it might make up from big businesses and corporations moving in.
“I see more businesses — not local businesses or family mom-and-pop shops. I see more industrial chains like [the one] Amazon just built one up the street, a big factory, so I mean, I don’t really see” the impact opponents say they’re worried about.
Government mandated solutions meant to aid lower income families often fail them. People applying to Section 8 housing experience longer than expected waitlists, landlords are unwilling to accept them, or the allowable amounts for rent don’t keep pace with the actual cost of housing.
Online real estate markets such as Zillow may provide some additional help. It’s “frequently asked questions” page allows renters to browse properties with an “income restricted” filter to find housing that works with their budget.