With affordability topping political agendas, LA doubles down on rent control

This story was originally published by LAist.

Everyone from President Donald Trump to New York mayor-elect Zohran Mamdani is talking about affordability. But how exactly can the government bring down housing costs? 

You could build more housing. Or you could simply ban large rent hikes. The Los Angeles City Council recently voted on a plan to take the second approach by tightening its rent control law. 

LA has had rent control for decades. Still, most of the city’s renters pay more than what the federal government considers affordable. In a recent meeting, councilmember Nithya Raman said the city’s rent control formula was long overdue for an update.

"It has been 40 years since we put this formula together,” she said. "These extraordinary rent increases are driving people out of the city."

LA landlords can currently raise rents at least 3% every year, and up to 10% in some apartments during periods of high inflation. Low-income immigrant renters like Humberto Altamira say they can’t afford any increase.

Speaking with a reporter in Spanish, the unemployed cook said rising rents could cause him and his wife “to live on the streets.” 

Earlier this year, Altamira's rent went up $50 per month. It may not sound like a lot, but one recent study commissioned by the city found that one out of every 10 LA renters is spending 90% or more of their income just on rent. Those tenants are teetering on the edge of homelessness. 

“Before, I had to work one or two jobs to pay the bills,” Altamira said. 

LA landlords argue that clamping down on rent hikes isn’t a long-term solution; the cost of insurance and building maintenance has risen faster than inflation. 

Megan Briceño is a landlord who owns eight rent-controlled apartments throughout LA. She was planning to build a new one as an accessory dwelling unit, but she said those plans are now on hold.

"I don't know how much longer I can continue to do business,” Briceño said. “I feel like I'm constantly fighting for my basic property rights here, for a basic fair return.”

Many economists argue that the way to drive rents down is to build a lot more housing. Fred Sutton, a spokesperson for a landlord group called the California Apartment Association, argued that lower rent control limits won’t do that. Instead, he said, these regulations send a message to developers and landlords:

"When someone looks at all the hurdles it takes to create homes and operate in the city of Los Angeles, why would you do it here versus anywhere else in the nation?” Sutton said.

Constructing new housing takes years. But rent control can take effect right away, which is why it’s politically popular in cities like LA.

Tackling affordability requires a plan for building and a plan for regulating rents, according to David Garcia, deputy director of policy at the University of California, Berkeley, Terner Center for Housing Innovation.

"Any politician in a big city right now really has to consider both,” Garcia said. “And the details are really going to matter. It can't just be political posturing."

New home building faces stiff opposition in many LA neighborhoods. The LA City Council recently voted not to allow new apartments in most of the city’s residential areas. And on rent control, the council ultimately decided to cap increases at 4%. Under the rules, nearly 70% of tenants will be covered.