California Voters Say No to Proposition 33, Uphold Rent Control Limits

In a decisive move, California voters have rejected Proposition 33, a measure designed to provide local governments more authority over rent control regulations. According to the Associated Press, with half of the ballots counted as of Wednesday morning, the ‘No’ votes tallied to approximately 5.4 million, leading with 62%, in stark contrast to the 38% of voters who supported the measure.

NBC Los Angeles

reports that the proposition attempted to dismantle the Costa-Hawkins Rental Housing Act, which since 1995, has restricted cities and counties in California from applying rent control to post-1995 housing developments and single-family homes. Despite endorsements from Los Angeles and San Francisco Counties, the voters favored positions held by business groups, the California Apartment Association, and the Association of Realtors.

Proponents like the California Nurses Association and the AIDS Healthcare Foundation argued that Prop 33 would ease the burden on vulnerable groups struggling to pay rent—seniors, low-wage workers, single parents, and veterans. The AIDS Healthcare Foundation alone invested over $46 million into the campaign according to

CBS News Los Angeles

. Susie Shannon with the Yes on 33 campaign said, “It just gives local communities the right to enact rent control in whatever way they think is best.”

On the flip side, landlords, property developers, and opposition groups warned that passing Prop 33 would stifle the housing market incentives necessary for development. “Prop. 33 would take the market out of the equation and put the government in charge of putting in place price caps and making it so developers and those who are building housing have no incentive to build that housing,” stated Nathan Click with the No on 33 campaign, as per the report by

CBS News Los Angeles

.

Historical data seemed to echo the concerns of those opposing the measure. A Stanford University study referenced by

CBS News Los Angeles

suggested that rent control may lead landlords to transform their properties, potentially reducing the stock of rent-controlled housing. In the face of this third rejection of similar propositions since 2018, it becomes clear that voters might remain wary of significant changes to rent control laws.

As reported by

SFGate

, the total campaign finances demonstrated a stark contrast: supporters of Prop 33 raised about $50.1 million, while its opponents raised nearly $124.6 million to defeat it. But the numbers reflected a larger narrative that Californians, at least for now, seem to believe that the housing crisis requires solutions other than expanded rent control.

Note: Thank you for visiting our website! We strive to keep you informed with the latest updates based on expected timelines, although please note that we are not affiliated with any official bodies. Our team is committed to ensuring accuracy and transparency in our reporting, verifying all information before publication. We aim to bring you reliable news, and if you have any questions or concerns about our content, feel free to reach out to us via email. We appreciate your trust and support!