LA Caps Rent Hikes at 1-4% to Boost Affordability, Prevent Homelessness

On November 13, 2025, the Los Angeles city council overhauled its rent control rules, sharply lowering the annual rent increases facing tenants in one of the country's most expensive cities. Under the new regulations, landlords of buildings covered by the city's rent stabilization laws - about three-quarters of the market - will be permitted to raise rents by between 1% and 4% each year, depending on inflation, down from the previous allowance of 3% to 8%.

The council approved the measure by a 12-2 vote after a heated, nearly two-hour hearing that exposed deep ideological divisions over whether the changes would provide a lifeline to struggling tenants or force landlords out of business. The decision, championed by city councilmember Nithya Raman, is likely to take effect before many tenants face their next rent increase in February 2026.

Landlords in Los Angeles have decried the move, warning that the loss of income will make it harder to maintain properties, force sales, and discourage the development of new apartments in a city with a severe housing shortage. However, the city's mayor, Karen Bass, has applauded the council's action, calling it part of her broader focus on making it easier to live in the city and prevent people from falling into homelessness.