California Rent Control: What Proposition 33 Means for You

Proposition 33 is back on the California ballot, aiming to give local governments more authority to enact rent control measures. Under current law, the Costa-Hawkins Rental Housing Act limits rent control in three key ways: it exempts single-family homes, buildings constructed after 1995, and restricts rent caps when new tenants move in. Proposition 33 would eliminate these restrictions, allowing cities and counties to create broader rent control policies.

This could help address California’s well-known housing affordability crisis. Many renters are paying more than 30% of their income on rent, and in some cases, more than half. Supporters of the measure believe expanded rent control could provide much-needed relief. On the other hand, opponents warn that it could discourage new housing construction, potentially worsening the shortage of available rentals, as seen in studies of cities like San Francisco where rent control led some landlords to sell or convert their rental units.

If passed, Proposition 33 would impact property owners, potentially lowering property values and reducing property tax revenues. Local governments could also see increased costs for implementing and enforcing expanded rent control laws. The true impact would vary depending on how each city or county chooses to implement the measure.

For property owners and renters alike, the outcome of this vote could bring significant changes. If you have questions about how this might affect your rental property, if you’re considering buying or selling income property, or if you're looking to rent, don’t hesitate to reach out to us. We're here to help you navigate these potential changes in the California rental market. Contact us today!