About one million of Los Angeles’ 1.5 million households rent their homes. About 650,000 of those homes are in units covered by the rent-stabilization ordinance (RSO), which is applicable to units constructed before 1979.

Park La Brea Apartments

Rent increases for units covered by the RSO occur in two ways. First, when a new tenant moves in, rents may be set at market levels because there is no ceiling on the initial rent for a new tenant. During a tenancy, rents may be increased by the permitted annual across-the-board increases.

In May 2024, the Economic Roundtable project team completed a report analyzing the RSO that has not yet been released by the City of Los Angeles. The report describes:

• Rent Savings for RSO Tenants
• Returns from Rental Properties
• RSO and Non-RSO Renters Compared
• Vulnerable Renters
• Rent Increases and Homelessness
• Financial Stress of RSO Landlords by Building Size
• Impact of the Covid Pandemic on Landlords
• Market-Rate Rents, Restricted Rents, and Inflation
• The History of Rent Increase Standards under the RSO
• Operating Expenses and Other Costs for Low-Income Housing
• Increases in Apartment Operating Costs
• Returns from Rental Properties
• Rent Increases for Landlords Who Pay for Gas and/or Electricity
• Accessory Dwelling Units
• Allowable Annual Rent Adjustments in Other California Cities
• The Annual Increase Standard
• Compliance Issues