Newsom Adjusts Rent Caps for Luxury Homes After LA Wildfires

The executive order aims to increase housing availability for wildfire evacuees while closing loopholes in rent-gouging laws.

Governor Gavin Newsom issued an executive order modifying rent regulations for certain high-end rental properties in Los Angeles following recent wildfires.
The changes allow single-family homes with four or more bedrooms in affluent zip codes to exceed prior rent caps, potentially unlocking more housing for displaced residents.
Previously, rent caps limited new listings to 60% above the federally determined fair market rate, which was deemed too low to incentivize landlords in wealthy areas.
The order also tightens rules to prevent landlords from bypassing rent caps through lease agreements longer than one year.
These temporary measures, designed to address housing shortages, are set to expire on March 8 unless extended.