Rent Control on California's Ballots: Market Trends
California voters will decide on rent control in November, marking the third attempt since 2018. Proposition 33 aims to repeal the Costa-Hawkins Rental Housing Act, expanding local government's authority to enact rent control.
Current Market Trends:
- San Francisco: Rents peaked at $3,125/month in 2019. Post-pandemic, growth is moderate at 4% for 2024.
- San Jose: Rents recovered to $3,065/month, with 2024 growth at 2.7%. Expected to peak at 4.5% by 2025.
- East Bay: Average rent is $2,400/month, with projected growth of 3-4% in the coming year.
- Sacramento: Most affordable large city with rents at $1,850/month. Growth at 2.4% in 2023.
- Los Angeles: Rent growth peaked at 6.8% in 2022, now less than 1% annually.
- Orange County: Rents jumped 16% in 2021, with a 4% increase in 2023. Expected to rise by 1% in 2024.
- Inland Empire: Rents 30% higher than early 2020, with a 1% increase projected for 2024.
- San Diego: Rent growth peaked at 12% in 2022, now at 0.2% annually.
- Rent control reduces investment in a property’s quality and causes a city’s housing stock to decay. By suppressing property values, rent control also reduces tax revenue to municipalities, hindering their ability to provide essential services.
Contact Us: For expert guidance and insights, reach out to Frank at (310) 503-4158 or Viktorie at (424) 301-0075 at The Ponce Real Estate Group.
