Santa Monica Rent Control's 2.3% Annual Cap Highlights Housing Turnover Challenges

Santa Monica, CA – A recent social media post from a property manager has ignited discussions regarding the long-term effects of Santa Monica's rent control policies on housing availability and community demographics. The tweet highlighted how minimal annual rent increases contribute to long-term tenancy, potentially limiting housing options for new families seeking to move into the city. This comes as the Santa Monica Rent Control Board announced a 2.3% General Adjustment for eligible units taking effect in September 2025.

Santa Monica's rent control ordinance, adopted in 1979, aims to stabilize housing costs, prevent unreasonable rent increases, and ensure a fair return for property owners. The regulations primarily apply to multi-unit residential buildings constructed before 1979. While intended to protect existing tenants from displacement, the policy's structure, particularly concerning annual adjustments tied to the Consumer Price Index, has drawn scrutiny.

The property manager, identified as Paul, shared a specific example on social media: > "We manage a building where 3 of our 3BR apartments are occupied by single male renters between 50-70 years of age paying roughly $1000 to $1500 per month. Annual rent increase this year was 2.3% 😂 so these guys got a bump of $20 to $30 in rent." He further asserted, > "These guys are NEVER moving to make way for your families. 🤡" This illustrates the significant disparity between controlled rents and current market rates, which reset upon vacancy due to California's Costa-Hawkins Rental Housing Act.

Critics argue that this dynamic reduces housing turnover, making it challenging for new residents, especially families, to find affordable housing. Between 1980 and 1990, Santa Monica experienced a more than 6% decline in family households with children, a trend not observed in comparable non-rent-controlled cities. A California Supreme Court case also noted that the rent control law "reduced the availability of private rental housing in Santa Monica and has made it more difficult for low-income renters, young families, and the elderly to find affordable rental housing."

In response to ongoing housing challenges, the Santa Monica City Council approved additional renter protections in January 2024, aiming to combat rising evictions and enhance housing stability. Mayor Phil Brock emphasized the importance of these measures, stating, "It is critically important that families who make up the fabric of our city have the ability to stay here." These recent amendments include protections against excessive rent increases and stronger anti-discrimination rules.

The ongoing debate in Santa Monica underscores the complex balance between protecting existing tenants and fostering housing fluidity for new populations. While rent control provides significant stability for long-term residents, its impact on overall housing supply and the ability of new families to establish roots in the community remains a central point of discussion for policymakers and residents alike.