The good news for those of us subject to statewide rent control, rent increases this year can be greater, but the obvious bad news is that inflationary pressures have led to rapidly increasing prices for all goods and services. And, to add bad news on top of bad news, the allowable increase under state law, Assembly Bill 1482, is limited to just 10%. Under Assembly Bill 1482, annual rent increases are limited to the greater of (i) CPI + 5%, or (ii) 10%.
This week, the U.S. Department of Labor and Statistics published the updated Consumer Price Index (CPI) for major urban areas. The California (as a whole) CPI is still pending from the California Department of Industrial Relations; however, CPI data is now available for urban areas across California such as Los Angeles-Long Beach-Anaheim, Riverside-San Bernardino-Ontario and others.
Please be sure to refer to the footnotes when referring to the chart above. For help on which area to use to calculate rent increases, please contact one of our Operational Advisors for assistance.