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 much alive again and it would significantly change California’s existing rent cap law under AB 1482.
If passed, AB 1157 would:
- Lower the statewide rent cap
From today’s 5% plus inflation (capped at 10%) down to 2% plus inflation, capped at 5%
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Expand rent caps and just-cause rules
To housing types that are currently exempt, including:
- Single-family homes
- Condos
- ADUs
- Individually owned townhomes
- Make rent caps permanent
By removing AB 1482’s current sunset date of January 1, 2030
None of these changes are small, and taken together they represent a major shift in how rental housing would be regulated statewide.
Why This Feels Familiar and Frustrating
On paper, rent control often sounds simple: limit rent increases, protect tenants, stabilize housing.
In the real world, it rarely works that cleanly.
Across decades of research and real-world examples, the same pattern shows up again and again:
- Rent control helps some existing tenants in covered units
- But it makes housing harder to build, harder to maintain, and harder to access over time
For housing providers, the concern isn’t theoretical. When rent growth is capped but costs keep rising, insurance, taxes, repairs, compliance - the math stops working. Owners delay improvements, sell, convert units, or stop building altogether.
The pressure doesn’t disappear. It just shifts, usually onto future renters, people trying to move, and anyone searching for housing in the open market.
The Costa-Hawkins Guardrails Matter
A lot of people don’t realize that California’s rental housing market still functions largely because of the boundaries set by the Costa-Hawkins Rental Housing Act.
Costa-Hawkins is what:
- Allows rents to reset to market when a tenant voluntarily moves out
- Keeps single-family homes, condos, and new construction from falling under strict local rent control
- Gives owners at least some predictability when deciding whether to invest, build, or hold rental property
AB 1157 doesn’t repeal Costa-Hawkins outright, but by expanding rent caps into currently exempt housing and removing the sunset date, it chips away at those guardrails in a very real way.
It’s also worth remembering that California voters have been pretty clear on this issue, rejecting statewide rent control expansions multiple times over the past several election cycles.
Why This Matters Now
Bills like this don’t always move quickly, but when they do, the impacts last a long time.
Decisions about whether to build an ADU, keep a rental, or reinvest in an older property are being made right now and policies like AB 1157 directly affect those choices.
That’s why it’s important for housing providers to stay aware, even when the process feels distant or overly political.
A Simple Way to Be Heard
If you’d like to share your concerns, the most effective step is also the easiest: reaching out to your Assemblymember.
You can do that using the CAA Voter Voice link below:
A short, respectful note from someone who actually provides housing can make more of a difference than you might expect.
Thanks, as always, for being part of the Housing Heroes community.
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.
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Steve Welty
CEO @ Good Life Property Management
DRE #01744610
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