The number of rent-controlled units in Santa Monica saw a small increase in 2024, marking the fifth consecutive year of growth in the city's protected housing stock, according to an annual report presented by the city's Rent Control Agency.
The report, delivered to the Rent Control Board during its recent meeting, showed a net gain of 65 controlled units, bringing the total to 27,668 at year's end. The increase was attributed to units returning to the rental market after previously being withdrawn under the Ellis Act, temporary exemptions expiring, and new registrations including some accessory dwelling units.
Despite this positive trend, the lasting impact of the Costa-Hawkins Rental Housing Act, which went into effect 26 years ago, remains evident in unit prices. Approximately three-quarters (75.8%) of rent-controlled units in Santa Monica have been rented at market rate at least once, leaving just 20.7% occupied by long-term tenants who moved in before 1999.
The report documented a decrease in Ellis Act activity, with only 14 units withdrawn from the rental housing market in 2024, while 34 previously withdrawn units returned to rent control jurisdiction. The Ellis Act, a state law enacted in 1986, allows property owners to exit the rental housing business by evicting tenants and withdrawing units from the market.
Eviction notices filed with the agency decreased to 74 in 2024, down from 85 the previous year and well below pre-pandemic levels that typically ranged from 86 to 112. The most common reason cited for eviction was alleged lease violations, accounting for 35% of notices.
The agency also reported 21 buyout agreements in 2024, the lowest number recorded since tracking began in 2015. Under these agreements, tenants voluntarily vacate rent-controlled units in exchange for financial compensation. The average buyout amount was $62,542, the highest since reporting began, possibly influenced by a new city ordinance requiring buyout offers to match or exceed permanent relocation payment requirements.
According to the report, rent levels continue to pose significant affordability challenges. The median rent for a one-bedroom unit rented at market rate in 2024 was $2,650, while a two-bedroom unit commanded $3,600. Based on the standard that housing is "affordable" if it consumes no more than 30% of household income, a tenant would need an annual income of $106,000 to afford the median one-bedroom apartment.
"To afford a studio, household income would need to be more than $84,000, and to afford a 3-bedroom apartment, household income would need to be above $190,000," the report stated.
The report also highlighted the agency's Public Information Department's work, which handled 11,608 contacts in 2024, primarily by telephone (67%), followed by email (22%) and in-person visits (10%). This represented a decrease from the 13,780 contacts in 2023, when many inquiries concerned the implementation of Measure RC and the resulting Adjusted General Adjustment.
The Hearings Department reported processing 155 petitions, with 95 decrease petitions filed by tenants alleging maintenance issues or reduced housing services. The department's mediation efforts proved successful, with 64% of decreased petitions fully or partially resolved through mediation.
Staff said the Board continues to face challenges balancing tenant protections with market pressures in one of California's most expensive rental markets. With nearly half (45.7%) of controlled units occupied by tenants who moved in since 2019, agency officials emphasized the importance of ensuring new tenants understand their rights under the rent control law.
The annual report also noted several regulatory changes adopted by the Rent Control Board in 2024, including adjustments to housing service valuation formulas and revised hearing procedures.
"Every year, this is such a wealth of information here, and something that I know throughout the year ahead as I have each year, I'm sure I'll reference this report many times," said Chair Kurt Gonska, expressing appreciation for the detailed data compiled by agency staff.
