California Weighs Sweeping Rent Control Changes with Proposition 33
This November, California voters will face a crucial decision on Proposition 33, a measure that aims to repeal the Costa-Hawkins Rental Housing Act and significantly expand rent control across the state. The proposition has sparked intense debate among policymakers, housing advocates, and landlords.
If passed, Prop. 33 would allow cities to implement rent control on all types of housing, including single-family homes and new apartments built after 1995, which are currently exempt under Costa-Hawkins. The measure would also permit cities to limit rent increases when new tenants move in, a practice currently prohibited.
Supporters argue that Prop. 33 is necessary to address California’s severe housing affordability crisis. With nearly 30% of California renters spending over half their income on rent, advocates believe stronger rent control measures are crucial for tenant protection.
However, the proposition faces significant opposition, including from 23 California mayors. These local leaders contend that Prop. 33 could undermine state housing laws and impede efforts to build new affordable housing. San Diego Mayor Todd Gloria warns that the measure could reverse progress made in increasing housing supply and stabilizing rents.
Critics also worry about a provision in Prop. 33 that could potentially overturn the Tenant Protection Act of 2019, which established statewide rent caps and just cause eviction protections. State Democratic leaders, such as Senator Toni Atkins and Assembly member Buffy Wicks, have voiced apprehension that the measure might allow wealthy cities to avoid building affordable housing.
This marks the third attempt since 2018 to overturn Costa-Hawkins through a ballot measure, the two previous efforts failed.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
