In a landmark decision after years of debate, the Los Angeles City Council has approved significant reforms to the city’s rent control ordinance, capping annual rent increases for hundreds of thousands of residents. The vote, which took place on Wednesday, November 12, 2025, marks the first major overhaul of Los Angeles rent control regulations in nearly four decades, aiming to provide much-needed stability in one of the nation’s most expensive housing markets. This update to Los Angeles rent control aims to foster greater housing affordability.
A City Grappling with a Housing Crisis and Los Angeles Rent Control
Los Angeles has long struggled with a severe housing affordability crisis. The city is home to a burgeoning homeless population, estimated at nearly 44,000 individuals, and a vast number of renters are considered “rent-burdened,” dedicating over half their income to housing costs. [Initial Context, 11, 12, 22, 23] This precarious situation has fueled tenant advocacy groups’ demands for stronger tenant protections against steep rent hikes that often outpace wage growth, a core function of Los Angeles rent control.
Decades in the Making: The Rent Stabilization Ordinance and Los Angeles Rent Control
The Rent Stabilization Ordinance (RSO) has been the cornerstone of Los Angeles’s rent control measures since its enactment in 1978. It generally applies to multi-family rental units built before October 1, 1978, safeguarding tenants from arbitrary evictions and limiting the frequency and magnitude of rent increases. Historically, landlords were permitted to raise rents by a baseline of 3% annually, with additional increases possible for utility costs, potentially reaching up to 10% in inflationary periods. This historic approach to Los Angeles rent control has been a subject of continuous discussion.
New Caps, New Formula for Los Angeles Rent Control
The approved reforms, championed by Councilmember Nithya Raman, chair of the Housing and Homelessness Committee, introduce a new formula for annual rent increases. The annual rent increase will now be tied to 90% of the change in the regional Consumer Price Index (CPI), with a new floor of 1% for years with low inflation and a strict cap of 4% annually. Crucially, the additional 2% increase previously allowed for landlords who covered tenant utilities has been eliminated under this new Los Angeles rent control framework.
This historic vote saw 12 of the 15 council members in favor, with Councilmembers Bob Blumenfield and John Lee voting against the changes. Councilmember Curren Price recused himself due to being a landlord. The application of the RSO ordinance is now significantly altered.
The new regulations will impact an estimated 651,000 rent-stabilized units, affecting approximately 42% of all households in Los Angeles, highlighting the broad reach of these Los Angeles rent control reforms.
Tenant Relief vs. Landlord Concerns in Los Angeles Housing
Tenant advocates hailed the decision as a vital step towards making Los Angeles more affordable and preventing displacement. “What we have right now is an opportunity to make L.A. more affordable, because when people can afford to stay in Los Angeles, this entire city thrives,” stated Councilmember Raman. Proponents argue that the lower caps will offer a lifeline to renters struggling to keep pace with rising living costs and will contribute to housing stability, a key goal of the updated rent stabilization ordinance.
However, landlord groups, including the California Apartment Association and the Apartment Association of Greater Los Angeles, expressed strong opposition. They argue that the reduced revenue potential will hinder their ability to manage escalating costs for insurance, maintenance, and property taxes. Critics warn that these changes could lead to deferred maintenance, a decline in housing quality, and disincentivize new construction and investment in the city. Scott Kurzban, Chief Operating Officer of Universe Holdings, stated, “They continue to ask landlords to bear the brunt of every issue in the city, and with no regard for whether or not landlords are actually able to afford to make the concession the city council is imposing on them.” This perspective highlights the ongoing challenges in balancing Los Angeles rent control with the needs of property owners.
Looking Ahead: The Future of Los Angeles Rent Control
While the council’s vote is a significant milestone, the approved language must still be drafted by the City Attorney’s Office and return for a final vote before becoming law. The implementation of these reforms comes at a critical juncture, as Los Angeles continues to face profound challenges in ensuring housing security for its diverse population. This Los Angeles News development underscores the ongoing tension between tenant protections and property owner concerns in the city’s persistent housing affordability battle, particularly concerning the future of Los Angeles rent control and its impact on Los Angeles housing.
