By SAJE Staff
November 12, 2025
This afternoon, the Los Angeles City Council approved setting annual allowable rent increases at between 1% and 4%, determined by 90% of the Consumer Price Index (CPI). This cap will apply to units in the City of Los Angeles built before 1978 that fall under the Los Angeles Rent Stabilization Ordinance (LARSO).
The vote directs the City Attorney to draft an ordinance, which we hope the City Council will pass before the end of the year. Once passed, it will take 30 days for the ordinance to take effect.
This rent cap reforms the decades-old formula the city has been using for LARSO properties, which pegged annual rent increases to the Consumer Price Index and allowed for raises of up to 8%, determined by 100% CPI. Tenant and housing advocates have been fighting for this protection to help address Los Angeles’ housing affordability and homelessness crises. Approximately 63% of Angelenos rent, and half pay more than 30% of their income on rent. The high cost of housing increases the risk for eviction (according to the Los Angeles City Controller, 91% percent of eviction notices issued in Los Angeles are for nonpayment of rent), which is a driver of people becoming homelessness. Affordable and stable rents also remove financial barriers to exiting homelessness.
In addition to capping the rent at 4%, the proposed ordinance will:
- Eliminate the additional 1% increases when landlords pay for gas or electricity
- Eliminate the 10% increase for additional dependents (this increase remains for additional occupants)
SAJE is proud to lead the Keep LA Housed coalition that worked tirelessly with community members, advocates and policymakers, to secure this win! Special thanks to Councilmember Nithya Raman (CD 4), who championed the ordinance, as well as Councilmembers Hugo Soto-Martinez (CD 13), Eunisses Hernandez (CD 1), Ysabel Jurado (CD 14), and Heather Hutt (CD 10), who supported the platform.
