Vote on proposition 33 to uphold Costa Hawkins
Overview: California renters are struggling to keep pace with rising rental costs, with the average monthly rent in the state currently at $2,867. Proposition 33, which aims to repeal the Costa-Hawkins Rental Housing Act, is designed to address the issue by prohibiting state limitations on local rent control initiatives. The state’s housing crisis has resulted in more renters spending half their income on rent, and the number of homeless in the state continues to rise. The practice of pricing people out of their rentals and requiring them to pay exorbitant deposits to secure a more affordable option elsewhere is not sustainable.
The U.S. Census Bureau reports that “renters make up a much larger share of households in California (44%) than in the rest of the US (35%) and according to the Public Policy Institute of California (PPIC), this percentage has remained fairly consistent for nearly six decades.
The state’s housing shortage and symbiotic increase in home prices however, have placed additional pressures on renters. This is partly because the limited inventory of available houses for sale has increased the number of potential home buyers with high-incomes being into the rental market.
About 40 years ago, the average California renter made 13% more than the average renter in the rest of the country. But, by 2022, that difference had ballooned to 40%, On the other hand, homeownership did not increase at the same rate. This has resulted in about one third of the renters in California making more than $100,000 a year—compared to 18% in the rest of the country.
Renters with higher incomes are helping to drive up the cost of rent, while individuals with lower incomes who are struggling today with these higher costs. As rents increase, more and more California renters are struggling to keep pace. More renters in the state now spend half their income on rent—this is more than in all but two states.
Despite this harsh reality, rents continue to rise. In November, renters in California will have an opportunity to weigh in and place some controls over the rising costs of housing by voting “YES” on Proposition 33.
Proposition 33, officially titled the “Prohibit State Limitations on Local Rent Control Initiative (2024),” is designed to accomplish two objectives. First, it will repeal the Costa-Hawkins Rental Housing Act (1995).