The Los Angeles County Board of Supervisors narrowly voted Tuesday in favor of a proposal to limit rent increases for many tenants in unincorporated areas to 3% or less starting next year.
The proposal was put forward by Sup. Holly Mitchell, who said the move came in response to the region’s continued affordable housing crisis.
“We all know that costs have gone up for everybody,” Mitchell said. “Insurance cost increases are astronomical across the state, particularly here in L.A. County. And we also know that double-digit rent increases for tenants are untenable and lead to increased houselessness.”
The county’s current rent hike limits
Most apartments built before Feb. 1, 1995 are already covered by a county rent control ordinance passed in 2018. The rules only apply to unincorporated areas such as East L.A., City Terrace and various pockets of South L.A.
Tenants living in these covered properties currently have their annual rent increases capped at 4%, but the county’s ordinance allows increases of up to 8% during periods of elevated inflation.
Mitchell's motion keeps the current 4% limit in place for the rest of 2024. If the board had not taken action, a new 4.275% allowable increase would have taken effect on July 1.
Lower rent caps divide the board
The more contentious proposal involved a significant decrease to rent caps starting on Jan. 1, 2025. That part of the proposal will limit increases in covered units to 60% of the annual change in the consumer price index — a measure of how much costs in general are rising throughout the economy — with a ceiling of 3%.
Ultimately, Mitchell voted in favor of the 3% cap along with Supervisors Lindsey Horvath and Hilda Solis. Supervisors Kathryn Barger and Janice Hahn voted against it.
“We are not going to solve the affordability crisis by layering different caps,” Barger said, arguing that high rents stem from sluggish housing construction. “We need to continue to streamline and expedite our review and entitlement processes to build housing in a timely manner.”
Small landlords could raise rents more
The proposal includes a carve-out for “small landlords” — defined as those who own no more than 10 units. Under the plan, next year they will be able to add an additional 1% increase on top of what larger landlords can charge.
Mitchell said the two-tiered system is meant to “slow the tide of corporatization.”
“We know today when mom and pops lose their property for a variety of reasons, there are not mom and pop owners stepping up to make the purchases,” Mitchell said. “It's corporate entities that are buying those properties. And when that happens, affordability goes out the window.”
What the public had to say
During Tuesday’s meeting, dozens of L.A. landlords spoke out against the plan, saying they’re still recovering from additional rent increase restrictions and stronger eviction protections put in place during the COVID-19 pandemic. Others said rising inflation, property maintenance costs, utility bills and insurance premiums already have them struggling financially.
“I simply cannot support grown adults and cover their cost of housing,” said Cheryl Turner with the Apartment Association of Greater Los Angeles. “I don't know how you were able to reach the 4%, and why you think it’s a reasonable rate of return when there are rising costs across the board. It is not fair.”
Many tenants also spoke out during the meeting, arguing that lower limits are needed to maintain housing stability for people already struggling to pay rent.
A March 2024 county report found the median household income for renters in unincorporated areas is $61,000, and most of them are paying more than 30% of their income on rent — a level considered unaffordable by federal government standards.
Concerns of growing homelessness
Sup. Solis said many of her constituents in East L.A. are already calling her office in financial distress. Latino homelessness has been rising sharply in L.A. County in recent years, in part due to overcrowded housing conditions.
“What I am very worried about is that we're going to again exacerbate homelessness,” Solis said. “Many families, especially in places like East L.A., you’ve got three and four families living together, maybe in a two-bedroom unit. That's deplorable.”
What’s next
Tuesday’s vote is not the final step. The Department of Consumer and Business Affairs now must bring these changes back to the Board of Supervisors for another vote.
The vote puts unincorporated areas of L.A. County more in line with a number of other cities — such as Santa Monica, Pasadena and Cudahy — that already cap increases in rent-stabilized properties to 3% or less.
One major jurisdiction — the city of L.A. — allows increases of up to 6% if landlords cover their tenant’s gas and electric bills. But some council members there also hope to soon lower the limits to 3% or less.
How to figure out the rules at your L.A. address
The rate at which your rent can go up differs widely depending on where you live, the age of the unit and a number of other factors. In L.A. County, it can be particularly confusing. In addition to the unincorporated areas affected by today's vote, there are 88 cities with their own rules.
Check out our L.A. rent hike cheat sheet, or go straight to the rules in:
- Baldwin Park
- Bell Gardens
- Beverly Hills
- Cudahy
- Culver City
- Inglewood
- City of L.A.
- Maywood
- Pasadena
- Pomona
- Santa Monica
- West Hollywood
- Other cities
