Santa Ana's rent-control ordinance, enacted with the goal of stabilizing housing costs for residents, appears to be contributing to an unexpected trend: rents in the city are rising at a pace faster than nearly anywhere else in the Los Angeles metropolitan area, according to current market data from Zumper.
The ordinance's scope is specific, capping increases only for multifamily units built before 1995. This leaves a significant portion of Santa Ana's rental housing stock exempt from its provisions. Newer apartments, single-family rentals, accessory dwelling units (ADUs), condominiums, and units managed by small landlords are not covered and continue to reprice at full market rates. This dual structure may explain why Santa Ana currently exhibits both rapid rent growth and one of the lowest average rents in Orange County.
While the ordinance protects existing tenants in older buildings from significant rent hikes, it does not suppress the citywide median rent. This is because asking rents are reset at vacancy, and all exempt units are free to adjust prices according to market demand. Early indicators suggest a supply-side pressure consistent with the economic distortions often associated with rent control measures.
Councilwoman Jessie Lopez was identified in the source material as the "primary driver" behind Santa Ana's rent-control ordinance. She made tenant-protection policy a central tenet of her platform, advocating for the strongest possible version of the law. Councilwoman Lopez consistently framed rent stabilization as a moral and equity-driven priority, engaged with tenant-advocacy groups through outreach, and pressed city staff for stricter caps and broader just-cause eviction rules.
The ordinance passed with the support of three council members: Councilwoman Jessie Lopez, Councilman Jonathan Ryan Hernandez, and Councilman Johnathan Mendez. These members, described as a 'progressive bloc,' argued that the measure was essential to protect long-term tenants from displacement and escalating housing costs. The source material noted that these three council members had also voted against allowing the Santa Ana Police Department to use drones, a decision that the source linked to the department's subsequent effectiveness in catching criminal suspects with drone assistance.
The remaining Santa Ana City Councilmembers — Councilwoman Nelida Mendoza, Councilman David Penaloza, Councilwoman Phil Bacerra, and Councilman Manuel Amezcua — opposed the rent control ordinance. Opponents expressed concerns that the ordinance would reduce the overall housing supply, discourage new investment in the city, and create administrative burdens for property owners. They warned these factors could worsen affordability over time and make Santa Ana an outlier within Orange County, potentially diminishing its attractiveness for new development.
The ordinance's design means rent stabilization benefits only those tenants who remain in covered units. Other residents face rising market prices, influenced by the freely repricing exempt housing stock and rent resets when units become vacant. Landlords operating older, covered buildings face increased compliance costs and are subject to lower allowable rent increases, factors that may reduce reinvestment in these properties and could, over time, shrink the available housing supply.
While the early data does not yet show a formal decrease in the total number of rental units, behavioral indicators—including higher vacancy rates, slower leasing activity, increased turnover management, and landlords repositioning their properties—align with patterns observed in other cities where rent caps have diminished incentives to maintain or expand housing stock.
Several council members involved in the ordinance's passage and opposition are facing upcoming elections. Councilman Vazquez is running for reelection this November, as are Councilwoman Bacerra and Councilman Amezcua. Councilwoman Lopez is running for State Assembly, with Councilman Penaloza also seeking a seat in the State Assembly against Lopez.
