ENCINITAS — California voters decisively rejected Proposition 33, the Justice for Renters Act, which would have repealed the Costa-Hawkins Rental Housing Act and allowed cities and counties to impose rent control on any type of housing, including single-family homes and new construction. The measure failed with approximately 62% of voters statewide casting ballots against it, marking the third time in six years that California voters have rejected expanded rent control.
In Encinitas, where median rents for a two-bedroom apartment have climbed past $3,200 per month, the debate over Prop 33 was especially heated. Renters who make up a significant portion of the city's population had hoped the measure would give the city council tools to slow rent increases. Landlords and property owners argued it would discourage new housing construction and reduce the quality of existing rental stock.
Renters who supported the measure described paying upwards of $3,400 a month for two-bedroom apartments in Leucadia, with landlords announcing further increases. Something has to give, they argued, as working families can no longer afford to live in the city. The measure's failure, they said, removed one of the few tools that might have helped.
Landlords Express Relief
On the other side, local property owners expressed relief at the measure's defeat. The San Diego County Apartment Association had campaigned heavily against Prop 33, arguing that rent control would reduce property values and discourage investment in new housing — the exact opposite of what the region needs to address its housing shortage.
Local property owners argued that while rent control sounds compassionate, economists consistently warn it makes the housing crisis worse in the long run. The solution, they maintained, is to build more housing, not to cap what existing housing can charge. Prop 33, they said, would have frozen the market.
With Prop 33's defeat, Encinitas renters will continue to rely on the state's existing Tenant Protection Act of 2019, which caps annual rent increases at 5% plus inflation for most properties. Housing advocates say they will continue pushing for local solutions, including inclusionary housing requirements and tenant assistance programs, to address affordability in the coastal city.