Newsom extends rent cap after L.A. firestorm but exempts new rental housing
March 7, 2025
Mike Nemeth
CAA Marketing and Communications Director
Gov. Gavin Newsom has issued an executive order extending rent-gouging protections for residential rental properties in Los Angeles County following the January 2025 firestorms. The order, signed today, Friday, March 7, 2025, continues restrictions on rent increases and evictions while expanding certain exemptions that may impact rental housing providers.
What’s new and continuing in this order
- Rent cap extension – The 10% cap on rent increases that was set to expire March 8, 2025, is now extended through July 1, 2025. This extension continues to apply under Penal Code Section 396, which restricts rent increases beyond 10% above pre-emergency levels for both existing tenants and new leases within Los Angeles County.
- Exemptions for newly constructed rental housing – Newly built rental properties with a certificate of occupancy issued after Jan. 1, 2025, are exempt from rent cap restrictions, providing an incentive for continued development during the recovery period.
- Exemptions clarified and expanded – Prior orders exempted certain large single-family homes (four+ bedrooms) in designated high-rent ZIP codes from rent caps if they had not been rented in the year before the emergency. This exemption remains in effect, providing flexibility for property owners with vacant high-value homes and ensuring they are not subject to the temporary price restrictions.
- Eviction protections continue – The order prohibits landlords from evicting tenants for the purpose of re-listing units at a higher price while emergency protections are in effect. This measure aims to prevent displacement and ensure housing stability during the ongoing recovery efforts.
Online resources
- Industry Insight: Anti-Price Gouging Laws – States of Emergency
- CAA’s Webinar: Understanding the Anti-Price Gouging Law
- Emergency Chart: Counties Named and Expiration Dates
What this means for rental housing providers
With the rent cap and eviction restrictions extended until July 1, 2025, landlords must continue to comply with price-gouging protections while navigating local rent control ordinances. The exemptions for certain single-family homes and new housing provide flexibility, but landlords should review their properties’ eligibility carefully.
Timeline: Housing orders in response to the firestorms
- Today, Friday, March 7, 2025 – Newsom extends rent caps and eviction protections through July 1, 2025, and adds an exemption for newly constructed rental housing.
- Feb. 4, 2025 – The governor expanded price-gouging protections to apply to leases of any length, preventing landlords from bypassing restrictions by offering 366-day leases.
- Jan. 17, 2025 – Newsom issued an order prohibiting evictions for tenants who sheltered displaced fire survivors.
- Jan. 16, 2025 – A previous executive order extended the rent cap through March 8, 2025.
- Jan. 7, 2025 – A state of emergency was declared, automatically triggering Penal Code 396, which caps rent increases at 10% post-emergency.
These laws are quite complex, the calculation of rent can be daunting, and not only is the state prosecuting, but so is the general public. Sadly there are sites shaming real estate agents and landlords for breaking these rules.
If you have any questions about your rental, please let us know. We can give you advice on how to stay out of trouble. Our team at Initial Property Management is managing the emergency order day by day and can offer advice should you need it. Give us a call at 818.464.4847.