California voters have decisively rejected Proposition 33, a measure to expand local rent control powers. With 87% of votes counted as of November 14, 2024, the measure failed, with 60.5% opposing and 39.5% supporting.
The proposition would have repealed key provisions of the Costa-Hawkins Rental Housing Act, a 1995 law that exempts single-family homes and new construction from rent control while allowing landlords to reset rents when tenants move out. Under the current statewide Tenant Protection Act (AB 1482), annual rent increases are already capped at 5% plus CPI (currently totaling 8.8% for 2024), with a maximum limit of 10%. This existing framework provides reasonable protections for tenants while maintaining incentives for new housing development.
As a landlord, I believe the outcome reflects voters' preference for addressing California's housing crisis through increased supply rather than expanded rent restrictions. In my experience, most property owners prioritize stable, long-term tenants over maximum profits, typically adjusting rents every two to three years to maintain predictable housing costs. The defeat of Proposition 33 suggests voters want to maintain the current balance of tenant protections while seeking solutions that encourage new housing development.
Curious about how much your property can rent for? Email Wendy at [email protected] for more insight into the rental market in your area.
November 14, 2024
