Happy Saturday Housing Heroes!
This November, California voters will decide the fate of Proposition 33, also known as the Justice for Renters Act, which could reshape the state’s housing landscape. The measure seeks to repeal the Costa-Hawkins Rental Housing Act of 1995, a law that has kept rent control in check for nearly three decades.
Costa-Hawkins currently prevents cities from applying rent control to single-family homes, condos, and apartments built after 1995, and allows landlords to raise rents to market rates when tenants move out.
If passed, Prop. 33 would allow local governments to expand rent control to more types of housing and even introduce vacancy control, which limits how much landlords can raise rents between tenants. The proposition would give local authorities the power to regulate rental rates on single-family homes and newer apartment buildings, which have been protected under Costa-Hawkins.
The Stakes for Renters and Landlords
While Prop. 33 aims to make housing more affordable for renters, opponents argue it could backfire by stifling new development. Developers may be hesitant to build new properties if they’re subject to stricter rent control measures, leading to fewer housing options in an already strained market. Additionally, smaller landlords, particularly those who own single-family homes or condos, may opt to sell rather than navigate more regulations. This could reduce the number of rental properties available, driving up demand and prices in the long term.
Renters could also feel the pinch. With the possibility of vacancy control, landlords might raise rents annually by the maximum allowed amount, even when market conditions don’t necessarily justify it, just to keep up with future restrictions.
Who’s Pushing for Proposition 33?
Michael Weinstein and the AIDS Healthcare Foundation are the primary backers of Prop. 33, making this their third attempt to repeal Costa-Hawkins after failed initiatives in 2018 and 2020. The foundation argues that affordable housing is essential for public health and that rent control is a critical tool for keeping housing costs manageable for lower-income residents.
The Opposition
Not everyone is on board with Prop. 33. State Senator Toni Atkins (D) and Assembly Appropriations Chair Buffy Wicks (D) have spoken out against the measure, citing concerns that it could halt housing production statewide. Powerful groups like the United Brotherhood of Carpenters and the NorCal Carpenters Union warn that the initiative could act as a “Trojan horse,” allowing cities to impose stringent requirements that would ultimately deter new housing development.
Proposition 34
In response to Prop. 33, the California Apartment Association has thrown its weight behind Proposition 34, which targets nonprofit organizations like the AIDS Healthcare Foundation. Prop. 34 proposes that nonprofits should focus their resources on their core missions—such as healthcare—rather than spending millions on political campaigns. This is particularly aimed at Weinstein’s advocacy for rent control, which some argue falls outside of the foundation’s primary mission to fight HIV/AIDS.
The Big Picture
Supporters of Prop. 33 believe that expanding rent control will curb rising housing costs and protect renters. However, opponents argue that the unintended consequences—such as a decline in new housing developments, deteriorating housing conditions, and reduced mobility for renters—will only worsen California’s housing crisis.
As the housing debate heats up ahead of the November vote, California’s renters, landlords, and developers alike will be watching closely. Will expanded rent control offer relief or add fuel to an already burning crisis? The decision could set a precedent for housing policies across the state for years to come.
I’ve put together a 60-second video covering all the essentials.
Just click here or tap the thumbnail below to watch! 👇
Also check this article to learn about Prop 34.
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Steve Welty
CEO @ Good Life Property Management
DRE #01744610
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