This measure has been one of the longest in the nation, giving protection to a population facing the highest rents in the country. Starting in 2023, landlords will once again be allowed to evict tenants for not paying their rent even if they’ve fallen behind for COVID-19-related circumstances, under a proposal released by the city housing department last week. The plan also calls for tenants living in rent-controlled apartments in the city — about three-quarters of the apartment stock — to once again face rent increases the following year, in January 2024.
Tenants in the city of Los Angeles alone received $1.5 billion in local and state rental assistance during the pandemic, the housing department report said. About 70% of those receiving the money were extremely low-income residents, such as families of four making less than $35,340 a year or an equivalent amount.
This decision comes at a time when the cost of rents are increasing throughout the country and especially in California.
What’s happening: Landlords are passing on their rising costs to renters.
Landlords are also capitalizing on the strong demand for housing, especially in the places where folks migrated because of remote work. Plus, people wanted more space and some traded up for more square footage. Increased demand also changes the kinds of housing on offer. When there’s more demand for pricier apartments, landlords may upgrade units to charge more.
Finally, the U.S. faces a housing shortage, and shortages drive up prices. Rent growth has slowed down a bit this summer, as the economy slowed, but prices are still climbing in strong job markets, Redfin reported recently.
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