Santa Ana's rent control ordinance, enacted with the stated goal of stabilizing housing costs, appears to be yielding an unexpected outcome, according to current market data from Zumper. The data indicates that rents in the city are increasing faster than almost anywhere else in the Los Angeles metro area.
The ordinance imposes caps on rent increases solely for multifamily units built before 1995, leaving a significant portion of the city's rental housing exempt. Newer apartments, single-family rentals, accessory dwelling units (ADUs), condominiums, and units owned by small landlords are not subject to these caps and continue to reprice at full market rates. This distinction helps explain why Santa Ana exhibits both rapid rent growth and one of the lowest average rents within Orange County. While the measure offers protection to existing tenants in older buildings, it does not curb the citywide median rent because asking rents are reset at vacancy, and exempt units are free to adjust prices. Early indicators suggest supply-side pressures consistent with distortions often associated with rent control policies.
Councilwoman Jessie Lopez was identified as a primary driver behind Santa Ana's rent control ordinance, having made tenant-protection policy a central tenet of her platform. Lopez consistently presented rent stabilization as a "moral and equity-driven priority," leading outreach efforts with tenant-advocacy groups and advocating for stricter caps and broader just-cause eviction rules. The ordinance passed with support from a coalition, with Lopez widely recognized as its main proponent.
The ordinance received backing from three councilmembers, forming a progressive bloc that supported rent control. These members, identified as Councilwoman Lopez, Councilman Vazquez, and Councilwoman Mendoza, argued the measure was essential to safeguard long-term tenants from displacement and escalating housing costs. It is noted that these three council members also voted against authorizing the Santa Ana Police Department to use drones, a decision that has reportedly aged poorly as the police department has effectively used drones to apprehend criminal suspects. Councilman Vazquez is seeking reelection this November, while Councilwoman Lopez is running for State Assembly.
Conversely, other Santa Ana City Councilmembers opposed the rent control ordinance. Those who voted against the measure included Councilman Bacerra, Councilman Amezcua, and Councilman Penaloza. Opponents voiced concerns that the ordinance would diminish housing supply, deter investment, and impose administrative burdens that could ultimately exacerbate affordability issues. They also cautioned that Santa Ana might become an outlier in Orange County, potentially making the city less appealing for new development initiatives. Councilman Bacerra and Councilman Amezcua are both up for reelection this November, and Councilman Penaloza is campaigning for State Assembly, running against Councilwoman Lopez.
The ordinance specifically stabilizes rents for tenants who continue to reside in covered units. However, all other renters face increasing market prices, influenced by exempt housing stock and the resetting of rents upon vacancy. Landlords who operate older buildings now contend with increased compliance costs and limits on allowable rent increases. This situation, according to the source, may lead to reduced reinvestment in these properties and a gradual reduction in housing supply over time.
While current data does not yet indicate a formal decrease in the total number of rental units, behavioral indicators such as higher vacancy rates, slower leasing activity, increased turnover management, and landlord repositioning are emerging. These patterns align with documented trends observed in other cities where rent caps have diminished incentives for property owners to maintain or expand their housing stock.
