L.A. sets historic cap on rent hikes

Los Angeles strengthened its rent stabilization law for the first time in 40 years Wednesday, setting a 4% ceiling on annual rent increases for a massive portion of the city's housing stock.

- BY NOAH GOLDBERG

ELIZA ANALCO attends the Keep LA Housed Coalition rally last year that urged less harmful rent increases.

The historic vote by the L.A. City Council will help set rents for decades to come for tenants who live in units built before 1978 nearly half of the city's residents.

Two council members voted against the new rules, arguing that they would tip the scale against landlords and could chill development. The measure's backers said the changes were necessary for tenants struggling to make rent every month.

"The city has not done enough to protect renters," said Councilmember Nithya Raman, who wrote the proposal. "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."

The vote came as L.A. and many parts of the country are struggling with a housing affordability crisis, and after democratic socialist Zohran Mamdani won the New York City mayor's election on a pledge to "freeze the rent."

Most Angelenos are renters, and more than half are rent-burdened, meaning they spend more than 30% of their income on rent, according to the city's Housing Department. One in 10 Angelenos pays 90% of their income toward rent.

The maximum annual rent increase for rent-stabilized apartments will now be 1% to 4%, depending on inflation.

That's down from current caps of 3% to 8% and as much as 10% if the landlord pays for utilities.

"This sets the message: Do not build here. Do not invest in Los Angeles. Do not keep your units on the market," said Councilmember John Lee, who voted against the new cap with Councilmember Bob Blumenfield.