Understanding California Rent Control in 2025: AB 1482, Costa‑Hawkins & Prop 33

California rent control laws have long been a source of tension between tenant protections and landlord rights. In 2025, statewide laws like AB 1482 remain in effect alongside powerful local ordinances and ongoing efforts to reshape the rental landscape through voter propositions like Prop 33. This guide offers a comprehensive overview of the rent control framework in California—including CPI-based rent caps, key exemptions under the Costa‑Hawkins Act, and the latest developments after the 2024 election.

Key Takeaways:

• AB 1482 limits rent increases statewide to CPI + 5%, capped at 10% annually.
• The Costa-Hawkins Act exempts single-family homes, condos, and post-1995 units.
• Proposition 33, which sought to expand local rent control, was rejected in the 2024 election.
• Just cause eviction laws apply in rent-controlled areas to protect tenant stability.
• Local ordinances may include additional rules on evictions, mediation, and lease terms.

Table of Contents

• What Is California Rent Control in 2025?
• Costa-Hawkins Rental Housing Act: Key Exemptions
• Proposition 33: A Push for Local Control That Failed
• Just Cause Eviction and Tenant Protections
• Emergency Rent Caps and Price Gouging Enforcement
• What’s Coming Next: 2025 Legislative Proposals
• What California Landlords and Tenants Need to Know
• Conclusion

What Is California Rent Control in 2025?

Under the California Tenant Protection Act of 2019 (AB 1482), most rental properties in California are subject to statewide rent control. The law limits rent increases to 5% plus the local Consumer Price Index (CPI), but never more than 10% in any 12-month period. As of August 1, 2024, the statewide cap sits at 8.8% in many regions like Los Angeles, though this figure is adjusted annually.

Landlords may raise rent only twice per year and must adhere to proper notice requirements. It’s important to note that local ordinances may impose stricter rent caps, so landlords should verify city or county laws before proceeding with an increase.

Costa-Hawkins Rental Housing Act: Key Exemptions

While AB 1482 applies broadly, the Costa-Hawkins Rental Housing Act, enacted in 1995, places significant limits on local rent control authority. It specifically exempts:

• Single-family homes and condominiums
• Units built after February 1, 1995
• New construction not yet covered by local rules

Additionally, Costa-Hawkins allows vacancy decontrol, which means landlords can raise rent to market levels once a tenant voluntarily vacates or is lawfully evicted.

This Act prevents cities from imposing strict rent caps on newer properties, aiming to encourage new housing development. However, critics argue that it restricts local flexibility in addressing housing affordability.

Proposition 33: A Push for Local Control That Failed

In November 2024, Proposition 33 appeared on the statewide ballot. Its goal: repeal Costa-Hawkins and allow cities to apply rent control to newer units and single-family homes.

Despite strong backing from tenant rights groups, Prop 33 failed with over 60% of voters rejecting the measure. Opponents argued that repealing Costa-Hawkins would discourage housing construction and reduce investment in rental properties.

As a result, California’s current statewide framework remains intact, and cities must continue to operate within Costa-Hawkins boundaries.

Just Cause Eviction and Tenant Protections

To ensure landlords don’t circumvent rent control by removing tenants, most rent control ordinances include just cause eviction protections. Under these rules, landlords must provide a legally valid reason to terminate a tenancy. Acceptable causes include:

• Nonpayment of rent
• Violation of lease terms
• Owner move-in
• Substantial renovations

Some cities also require relocation assistance when evictions are for no-fault reasons. Others regulate buyout agreements, mandate mediation or arbitration, and enforce minimum lease terms (often 12 months).

These rules are designed to prevent abusive evictions and promote housing stability.

Emergency Rent Caps and Price Gouging Enforcement

During declared emergencies—like wildfires or other disasters—price gouging protections kick in. These rules typically cap rent increases at 10% and are strictly enforced under California Penal Code Section 396.

Violations can result in civil fines of up to $10,000 per violation or more. Landlords must be especially cautious during emergency declarations to avoid penalties and potential lawsuits.

What’s Coming Next: 2025 Legislative Proposals

In early 2025, California lawmakers introduced several proposals to strengthen rent control, including:

• AB 1157, which would have lowered rent caps to CPI + 2% with a hard maximum of 5%
• Expanded just cause rules and eviction notice periods
• Enhanced tenant protections in high-cost counties

Although many of these bills were shelved or stalled, they signal a continued legislative push toward expanding tenant rights and limiting rent hikes. Local campaigns may also reintroduce efforts to repeal or amend Costa-Hawkins at the ballot box in future election cycles.

What California Landlords and Tenants Need to Know

Whether you’re a landlord or tenant, staying informed is essential. Here are a few best practices:

• Check local ordinances: Cities like Los Angeles, San Francisco, Berkeley, and Santa Monica have their own rent control laws.
• Track CPI updates: New CPI data is released every August and affects statewide rent caps.
• Understand exemptions: Know whether your property qualifies under Costa-Hawkins.
• Document all rent increases and evictions carefully: Ensure compliance with both state and local laws.
• Monitor legislation: 2025 may bring renewed rent control proposals or changes at the ballot box.

This is me talking to you now. Widget says you really should consult someone knowledgable (like me, or an attorney) before you take any actions.

Conclusion

California rent control in 2025 is shaped by a complex mix of state laws, local ordinances, and voter decisions. With AB 1482 setting CPI-linked rent caps, Costa-Hawkins preserving landlord exemptions, and Prop 33’s defeat maintaining the status quo, both renters and landlords must navigate evolving rules.

Staying ahead of changes means understanding your legal responsibilities and tenant rights. For regular updates, practical tools, and weekly insights into California rental law, join Widget’s Way and attend our “Wednesdays with Widget” live sessions.