Santa Ana’s rent-control ordinance, enacted with the stated goal of stabilizing housing costs, appears to be yielding unintended consequences. Recent market data from Zumper indicates that rents in the city are rising at a pace faster than almost anywhere else in the broader Los Angeles metropolitan area.
The ordinance, designed to cap rent increases, applies solely to multifamily units constructed before 1995. This leaves a significant portion of Santa Ana’s rental market unaffected. Newer apartment buildings, single-family rentals, accessory dwelling units (ADUs), condominiums, and properties owned by smaller landlords are all exempt from the caps, allowing their rents to adjust freely to market rates. This dual market explains why Santa Ana simultaneously experiences rapid rent growth and maintains one of Orange County’s lowest average rental rates.
While the measure offers protection to current tenants residing in older, covered buildings, it has not succeeded in suppressing the citywide median rent. This is because asking rents are allowed to reset to market levels whenever a covered unit becomes vacant, and all exempt units continue to reprice without restriction. Early analysis suggests supply-side pressures are emerging, consistent with distortions often associated with rent control policies.
Councilwoman Jessie Lopez was identified as the primary driving force behind the rent-control ordinance. She campaigned on tenant-protection policies and advocated for the most stringent version of the law. Councilwoman Lopez consistently framed rent stabilization as a "moral and equity-driven priority," engaged extensively with tenant-advocacy groups, and pressed city staff for stricter caps and more expansive just-cause eviction provisions. While the ordinance gained approval through a coalition of councilmembers, Councilwoman Lopez was widely seen as its chief proponent.
The ordinance received support from Councilman Johnathan Ryan Hernandez, Councilwoman Jessie Lopez, and Councilman Phil Bacerra. These councilmembers formed a progressive bloc that championed rent control, asserting it was necessary to shield long-term tenants from displacement and escalating housing expenses. It is also noted that these three councilmembers previously voted against authorizing the Santa Ana Police Department to utilize drones, a decision that has drawn scrutiny as the department has since reported effectiveness in apprehending criminal suspects with drone assistance.
Conversely, Councilwoman Nelida Mendoza, Councilman David Penaloza, Councilman David Amezcua, and Valerie Amezcua voted against the rent control ordinance. Opponents voiced concerns that the measure would diminish the overall housing supply, deter new investment, and impose administrative burdens that could, in time, exacerbate affordability challenges. They also cautioned that Santa Ana risked becoming an anomaly within Orange County, potentially making the city less appealing for future development.
For landlords overseeing older buildings subject to the ordinance, the new regulations entail increased compliance costs and reduced permissible rent increases. Such conditions may lead to a decrease in property reinvestment and, over time, a contraction in available housing supply. While early data has not yet indicated a formal reduction in the total number of rental units, behavioral patterns among landlords—including higher vacancy rates, slower leasing activity, increased turnover management, and strategic repositioning of properties—align with documented trends in other municipalities where rent caps have diminished incentives for maintaining or expanding housing stock.
The effectiveness of the ordinance comes into focus as several councilmembers approach elections. Councilwoman Jessie Lopez, a key architect of the policy, is running for State Assembly. Councilman Phil Bacerra, who supported the ordinance, is up for reelection this November. Additionally, Councilman David Amezcua, an opponent of the measure, is seeking reelection this November, as is David Penaloza, who is running for State Assembly against Lopez. The source also notes that Vazquez is running for reelection this November.