AB 1157 Didn’t Pass. Here’s the Update.


Steve Welty

Issue# 84

January 2026

Happy Saturday, Housing Heroes,

Quick follow-up to a recent note on AB 1157.

There’s an important update.

AB 1157 Has Been Halted... For Now

The rent control bill authored by Assemblymember Ash Kalra did not move forward after a hearing in the Assembly Judiciary Committee.

The bill needed seven votes to advance and fell short. As a result, AB 1157 is effectively done for this legislative session and will not become law this year.

That’s welcome news for housing providers.

A Quick Reminder of What the Bill Proposed
If passed, AB 1157 would have made major changes to California’s existing rent cap law by:

  • Lowering the statewide rent cap
    From 5% plus inflation (capped at 10%)
    To 2% plus inflation, capped at 5%
  • Expanding rent caps and just-cause rules to housing types that are currently exempt, including:
    • Single-family homes
    • Condos
    • ADUs
    • Individually owned townhomes
  • Removing the January 1, 2030 sunset date, making rent caps permanent

These weren’t minor tweaks. Together, they would have significantly changed how rental housing is regulated across the state.

Why This Still Matters
Although the bill has stalled, this isn’t the first time it’s come up.

AB 1157 failed to move forward last year as well, but it was brought back again. That pattern is worth paying attention to. Even when bills don’t pass, the ideas behind them often return in new forms.

For housing providers, that uncertainty affects real decisions, whether to build, reinvest, hold onto a property, or step away altogether.

One Question for You

We’d love your perspective.

Why do you think measures like this continue to be proposed, even after voters and lawmakers repeatedly push back?

Is it political pressure? A lack of understanding of housing economics? Something else entirely?

Hit reply and share your thoughts. Your insight helps shape future conversations and future notes.

Thanks, as always, for being part of the Housing Heroes community.

Steve


P.S. We recently expanded our newsletter into a private Facebook group where we share housing market insights, landlord tips, and behind-the-scenes data from what we’re seeing across California and where you can also connect and interact with other housing providers. We’d love for you to be a part of it.


Have questions about managing your property?

Our team proudly serves San Diego, Orange, and Riverside Counties. Schedule a call with us today, and let’s chat about how we can guide you through every step of your property management journey.


Steve Welty

CEO @ Good Life Property Management

DRE #01744610

5252 Balboa Ave #704, San Diego, California 92117
Unsubscribe · Preferences

The Housing Hero Newsletter By Steve Welty

Passionate about bringing positivity and fresh perspectives to the rental property industry CEO @ Good Life Property Management San Diego and Orange County. Managing over 1,300 units in San Diego and Orange County.

Read more from The Housing Hero Newsletter By Steve Welty

Steve Welty Issue# 83 January 2026 Happy Saturday, Housing Heroes! Our mission has always been simple—and ambitious: Make owning rental property easy. Until now, we’ve mostly measured that by feel. Owner feedback. Conversations. Retention. Referrals. All helpful. None precise. In 2026, that changes. This year, our most important company metric is something we call the Mission Score. It’s our way of objectively answering one core question: Is owning rental property actually getting easier? Why...

Steve Welty Issue# 82 January 2026 Happy Saturday, Housing Heroes! This week’s note is about a proposal working its way back through Sacramento that hasn’t made many headlines yet, but could have a real impact on housing providers across California. It’s a rent control bill that’s back for another try. A Bill That Didn’t Go Away AB 1157, authored by Assemblymember Ash Kalra, is being revived as the Legislature enters its second year of the session. The bill stalled last year, but it’s very...

Steve Welty Issue# 81 January 2026 Happy Saturday, Housing Heroes! We hope you had a chance to recharge over the holidays and ease into 2026. We’re kicking off the year with an important (and easy-to-miss) update for housing providers across Southern California. It’s one of those rules that doesn’t always make headlines, but can quietly affect rent increases, renewals, and listings if you’re not watching closely. A Temporary 10% Rent Cap Is Back In late December, Governor Newsom declared a...