Councilmembers Kristen Sneddon and Wendy Santamaria propose to cap annual rent increases at 60 percent of CPI (Consumer Price Index) within the City of Santa Barbara, introducing their plan perhaps as early as October 14. (We’ll know after the agenda comes out on October 9.)
With Santa Barbara’s CPI currently at 2.7 percent, that would limit rent increases this year to just 1.62 percent. In years when CPI is negative, no increases would be allowed at all — unless property owners go before the Rental Housing Mediation Board, forcing disclosure of financials and adding new administrative costs for the city. In short, you would need government approval just to manage your own private property.
Why You Need to Speak Up Now: If rent control moves forward, the consequences will be real for both property owners and renters in Santa Barbara:
1. Fewer Rentals Available — Many owners will shift their properties to short-term rentals or other uses if they can.
2. New Housing Will Stall — Developers will stop building, choking off future supply.
3. Investment Will Dry Up — Investors will skip Santa Barbara entirely, reducing options for renters.
4. Forced Sales and Higher Rents — Some owners will sell, and new buyers will raise rents to the maximum allowed.
5. Falling Property Values — Both rental providers and homeowners will see their values decline.
6. Less Revenue for the City — Lower values mean less property tax money for city services.
7. Rents Will Still Go Up — With fewer units and less investment, scarcity will continue driving rents higher.
8. More Government-Owned Housing — The Housing Authority, exempt from paying taxes, will grow its holdings, further reducing city revenue.
9. Decline in Property Upkeep — With restricted rental income, landlords may delay repairs or cut back on reinvestment, which not only lowers housing quality but also drives down surrounding property values, diminishing the overall value of the city’s housing stock.
10. What’s Next? — Mandates on renting out spare bedrooms? A vacancy tax on second homes, commercial spaces, and rentals?
The Bottom Line: Rent control will not solve our housing challenges — it will make them worse. The only way to stop this is for City Council to hear directly from you today!
Mayor Randy Rowse. rrowse@santabarbaraca.gov
Kristen Sneddon KSneddon@santabarbaraca.gov
Wendy Santamaria WSantamaria@santabarbaraca.gov
Eric Friedman EFriedman@santabarbaraca.gov
Meagan Harmon mharmon@santabarbaraca.gov
Mike Jordan mjordan@santabarbaraca.gov
Oscar Gutierrez ogutierrez@santabarbaraca.gov
