Despite high hopes and promises of relief for tenants, Santa Ana’s recent implementation of stricter rent control measures has failed to curb the city’s soaring housing costs, leaving residents facing even higher rents. The decision, championed by City Council members Thai Viet Phan, Jonathan Ryan Hernandez, Jessie Lopez, and former Mayor Vicente Sarmiento, is now under scrutiny as rental prices continue to climb, and concerns arise that the rent control measures may have inadvertently contributed to the issue.
In a move that diverged from the dissenting voices of council members David Penaloza, Phil Bacerra, and Nelida Mendoza, the City Council pushed forward with rent control, limiting annual increases to either 3% or 80% of the percent change in the Consumer Price Index (CPI) over the past year. However, recent data from the Santa Ana Rent Report for December 2023 paints a grim picture of the city’s rental landscape.
Contrary to expectations, Apartment List’s December 2023 Rent Report reveals an alarming 0.7% year-over-year increase in the overall median rent, now standing at $2,180, with the median rent for a 1-bedroom apartment at $1,833 and a 2-bedroom commanding $2,289. RentCafe’s data adds further detail, indicating that the average rent for an apartment in Santa Ana is now $2,576, with an average size of 860 square feet.
The decision to enforce rent control, aimed at providing relief to struggling tenants, seems to have backfired. Eleven months into 2023, rents in the city have increased by 1.9%, surpassing the 1.3% growth recorded in the same timeframe in 2022. This contradicts the intended outcome of the rent control measures, which aimed to provide relief to renters.
Moreover, Santa Ana’s rent growth has outpaced both state and national averages, raising questions about the efficacy of the rent control measures and their impact on Santa Ana’s housing market. Critics argue that these policies, while well-intentioned, have inadvertently led to a negative outcome, with rental prices continuing to rise and exacerbating the challenges faced by tenants.
November rent growth in Santa Ana ranked #5 among large U.S. cities, increasing by 0.4% compared to the national average of -0.9%. The city now stands as the 11th most expensive large city in the U.S., with a median rent that is 4.8% higher than the wider Los Angeles metro area.
As residents are faced with the increasing burden of housing costs, attention is turning towards the City Council members who championed the rent control measures. The data indicates that, despite their efforts, the policy may have backfired and failed to address the root issues in the rental market, and residents are left to shoulder the adverse consequences. The effectiveness of rent control in Santa Ana is now being called into question, casting a shadow over the promises made by the council members who supported the policy.
