The chart below shows the percentage of COLA increase that . Prices in the Los Angeles area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), advanced 1.9 percent in January, the U.S. Bureau of Labor Statistics reported today. Download and listen on our App, subscribe on Apple Podcasts and follow on Spotify. This cookie is set by GDPR Cookie Consent plugin. This data was released on March 10, 2022 for the reference month of February 2022. The average cost of rent for a one-bedroom unit in Santa Monica is roughly $2,800, which represents an approximate 14% increase from 2021. The California CPI formula was developed by the California Department of Industrial Relations. Last Modified Date: Tuesday, February 14, 2023, Area prices were up 1.9 percent over the past month, up 5.8 percent from a year ago, Chart 1. Upstate NY's minimum wage to hit $14.20 an hour in 2023. Changes by the US Bureau of Labor Statistics made in 2018 have delayed and will likely continue to delay updates to the CPI, and therefore also delay the DIRs update on exemption salary level to mid-October. Do I qualify? City of Oakland | Allowable Rent Increases AB 1482 restricts rent increases in any 12-month period to no more than 5% plus the percentage change in the cost of living (CPI), or 10%, whichever is lower. Rent control refers to a freeze on the monthly cost of rent. On a monthly basis, the CPI rose 0.7% in October following a 0.1% gain in September, largely driven by increased prices for gasoline. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 93 percent of the total U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. population. However, there are exemptions to this rent control law. California Apartment Association980 Ninth Street, Suite 1430Sacramento, CA 95814, toll free: 800-967-4222 fax: 877-999-7881 membership@caanet.org. CPI is the weighted combination of many categories of spending that are tracked by the government. That tool is also available below. With respect to the federal exemption for employees in computer-related occupations under the Fair Labor Standards Act (FSLA), the US Department of Labor (DOL)lists a salary level threshold of $684 per week ($35,568 per year). We fully support the Fair Housing Act and the Equal Opportunity Act principles. However, that is not the maximum a landlord can raise the rent in Long Beach. According to AB 1482, landlords are required to use the CPI from the previous April for their specific market area to calculate the allowable rent increase. Theyre experiencing very large cost increases., Heres the fine print. All taxes directly associated with the purchase and use of items are included in the index. Create property listing pages and share them with your network. (Data in this report are not seasonally adjusted. PDF No. 2021/065 TO COUNTY ASSESSORS - California State Board of Equalization As of January 2022, the time series was updated back to 1988 using data from U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: All Items in San Francisco-Oakland-Hayward, CA (CBSA) [CUURA422SA0], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CUURA422SA0, January 12, 2022. While overall annual consumer inflation eased slightly last month to 6.4% from 6.5% in December and the . Orange County Register, The hot new amenity for multimillion-dollar luxury homes in California? Unlike in many other states, Californias rent control laws and tenant protection laws passed during the COVID-19 pandemic have mostly prevented skyrocketing rental prices and mass evictions. This was the largest monthly increase since June 2022. }); (6) Indexes on a December 1997=100 base. If you believe that your property is exempt, check with your real estate attorney to draft a notice of exemption or consult with a professional organization like California Apartment Association or California Association of Realtors for up-to-date forms and information. 2022 Cost-of-Living Adjustment Coming in May - CalPERS PERSpective This area includes Los Angeles County and Orange County. Collect rental applications with detailed forms. What does this mean for landlords and tenants in the Golden State? Anaheim. Topics The The BLS has announced that starting in January 2022, weights for the CPI will be calculated based on consumer expenditure data from 2019-2020. In September 2020, the California legislature passed the CA Relief Act and subsequently passed Senate Bill 91, both designed to extend renter protections including an eviction moratorium and financial assistance for housing from federal stimulus funds. If the vacancy rate is going down, a major employer is coming into the area, or if a new commercial complex is bringing in more renters, it may be time for a rent increase. Sacramento Bee. And now, heres whats happening across California: Note: Some of the sites we link to may limit the number of stories you can access without subscribing. After January's consumer price report on Tuesday, some economists were already worried. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The primary contributing variable to the deceleration in inflation was the [], The Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.1% on a seasonally adjusted basis in November, reported the U.S. Bureau of Labor Statistics. A few months ago, I put together a guide on finding what protections against rent increases and evictions you qualify for if you live in Los Angeles. The BLS releases a new CPI every month which represents the increase or decrease in the price of goods and services in several key categories. The Consumer Price Index (CPI) measures price changes in goods and services purchased by urban consumers. You can unsubscribe at any time. Starting January 1, 2022, California employers must pay their computer professional employees a salary of at least $104,149.81 annually ($8,679.16 monthly) or an hourly wage of $50.00 every hour worked in order to remain exempt from paying such employees overtime compensation. | This website is an Attorney Advertisement. The record-high inflation that were experiencing has also brought the cost of living in California through the roof. This can begin in September. Breaking down these categories helps explain the main drivers behind price changes. You may occasionally receive promotional content from the Los Angeles Times. The California CPI formula was developed by the California Department of Industrial Relations. There are also many California cities and counties that have decided that the state law isnt strict enough. San Francisco Chronicle, California is making a $4-billion bet that expanding the role of schools in high-poverty areas into neighborhood centers with healthcare and other social services will improve academic performance. Partly offsetting the increases were price decreases in used cars and trucks (-10.0 percent) and household furnishings and operations (-0.5 percent). The California Montessori Project is a public K-8 charter program using research-based . Ever notice that CA new home construction is only supplying homes for the very well off? With the advent of COVID-19 shutdowns, housing protections became an important part of the strategy to protect renters and to provide adequate housing supply. To illustrate the various challenges that exist for landlords in California, I want to examine the average prices and rent increases that are allowed in the cities of Santa Monica, Beverly Hills and Los Angeles. That puts an end to the restriction in 2023. That means it can not be increased by the property owner once the lease expires. All other item stratum index series were calculated using a geometric means estimator. Dont fall for that zoning baloney. Further, an hourly paid computer-related position may be exempt if paid at least $27.63 per hour. Southern California's 6.6% inflation rate highest in 31 years (See table A.) New Santa Barbara County Rent Cap, 9% - SBRPA If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers: Silicon Valley 10% of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. Copyright 2023 Sage Real Estate | The highest-rated multifamily brokerage in Long Beach, CA, in some areas, theyve gone up more than 30% percent, State of California to pass a series of rent control laws with AB-1482, U.S. Bureau of Labor Statistics as the Consumer Price Index, which have had rent control laws in place before AB 1482, published by the US Bureau of Labor Statistics, read our detailed step-by-step guide here. We Asked Experienced Real Estate Investors How to Navigate Todays New Market and Heres What They Said, Sage Real Estates Juan Huizar Becomes the Newest Board Member of the Apartment Association of California Southern Cities, Real Estate Broker Cody Charnell Joins Sage Real Estate from Buckingham Investments. Rent stabilization refers to a cap on the annual increase of rent for an apartment from one year to the next. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". These properties are exempt from the Tenant Protection Act of 2019: If a rental property falls under any of these situations, the landlord must provide a notice of exemption from AB 1482 to their tenants. Santa Monica is one of the locations that follow rent. Inform applicants about the rental decision with ease. 5% base + 7.9% CPI change (see above) = exceeds max 10% rent increase Because the maximum is 10%, this is the maximum rent increase for this 12-month period. Federal benefit rates increase when the cost-of-living rises, as measured by the Department of Labor's Consumer Price Index (CPI-W). Necessary cookies are absolutely essential for the website to function properly. This is especially true if you have current tenants who are reliable, pay the rent on time, and take good care of the property. Prices for food at home rose 9.3 percent since a year ago. Your information will never be shared or sold to a 3rd party. An ongoing housing crisis that cant meet housing demand and dwindling middle-class jobs have forced the State of California to pass a series of rent control laws with AB-1482 to help maintain affordable housing for low-income and moderate-income households. So, politicians will cleverly point their fingers at zoning, but the truth is that governments (fees, regulations & corruption) have priced most people out of the housing market. This cookie is set by GDPR Cookie Consent plugin. Here are the CPI numbers for California and its four major areas: When you add your regions CPI to the minimum allowable rent increase of 5% using 2022 CPI numbers, you may end up with a two-digit number. Six Flags Entertainment (SIX) Q4 2022 Earnings Call Transcript Any duplex where the owner lives in the other unit, Commercial properties (retail stores, restaurants, etc.