For the third time, Californians have sent a decisive message: Proposition 33 was bad policy.
On Election Day, voters overwhelmingly rejected this latest attempt to dismantle the Costa-Hawkins Rental Housing Act – saying no to policies that would have imposed stricter rent control across the state.
The defeat of Proposition 33 demonstrates that it’s time for real solutions to address California’s housing crisis.
So, why did two-thirds of voters vote against a measure that promised to lower housing prices for Californians? Simply put, they didn’t buy it.
Let’s look at what was being proposed. Proposition 33, like its predecessors Propositions 10 and 21, would have allowed local governments to impose strict rent control, even on single-family homes and newer rental properties. Proponents claimed this would make housing more affordable, but voters knew better.
Voters understand that rent control is unfair. It provides lower rents to people who are already in rent-controlled homes – regardless of their financial need. It’s not based on income, meaning wealthy tenants can benefit from artificially low rents while low-income families remain priced out of the market.
The more voters learned about this ballot measure, the more it was a nonstarter. As one opponent put it: “Rent control is not a solution to poverty or housing insecurity – it’s a Band-Aid that creates more problems than it solves.”
With Proposition 33 behind us, it’s time to focus on what works. Policymakers must turn their attention to solutions that increase housing supply, support those in genuine need, and address the root causes of rising costs.
First, one of the greatest barriers to new housing is California’s Byzantine permitting process. You just can’t build houses, condos, townhomes or apartments without years of paperwork – and that means a much larger capital cushion than is needed elsewhere in the U.S. Projects face expensive delays due to red tape, environmental reviews, and local opposition. Lawmakers must streamline this process to encourage the construction of both multi-family and single-family homes.
Next, instead of blanket policies like rent control, let’s focus on targeted assistance for those who truly need it. While Section 8 is an essential form of assistance, it’s not enough. The amount of rent money provided by a Section 8 housing voucher often doesn’t cover the cost of rent in urban areas, including the desirable San Diego market.
Rental assistance programs can provide low-income families with direct support, helping them secure housing without discouraging investment in new units. We saw our cities and counties step up during the pandemic. Let’s have our local governments continue that assistance and go beyond Section 8 with real help for renters. Notable examples include San Diego County’s pilot shallow rental subsidy program for older adults and the San Diego Housing Commission’s Housing Instability Prevention Program, which provides up to $750 per month toward rent for eligible renters.
Finally, one of the most pressing challenges facing property owners is the rising cost of insurance. A 2023 survey by the California Rental Housing Association found that 91% of rental property owners experienced insurance rate increases in the previous year. While homeowners’ policies have received some attention, rental property owners continue to struggle under the burden of soaring premiums.
This is an area where government intervention is needed, yet it’s being ignored by lawmakers. By providing options for insurance coverage or creating programs to stabilize rates, the state could offer meaningful relief to property owners – ensuring they can maintain and improve their properties without passing costs onto tenants.
Proposition 33’s defeat highlights a critical lesson: overregulation is not the solution to California’s housing crisis.
As a large part of the housing community, the SCRHA and its members stand ready to work with our elected leaders to build practical, market driven solutions – not failed policies that voters have rejected time and again.
Alan Pentico, CAE, is the Executive Director of the Southern California Rental Housing Association.
