
Preserving Housing Stability and Investment: The Legacy and Importance of Costa-Hawkins
Last week I was in Sacramento, along with other local colleagues, representing our Santa Barbara community at the California Association of REALTORS®’ Board of Directors meetings.
A significant moment of this year’s meetings is the celebration of the 30th anniversary of the Costa-Hawkins Rental Housing Act, landmark legislation passed in 1995 that remains a foundational safeguard for both property owners and future renters across California.
Before Costa-Hawkins, cities like Santa Monica, Berkeley, and San Francisco adopted extreme rent control ordinances, including “vacancy control”, a policy that capped rents indefinitely, even after a tenant moved out. These policies stripped owners of the ability to adjust rents to meet rising costs, discouraging investment and causing many to sell their properties at a loss. Housing providers were left without a fair return, and the rental housing market suffered.



