Half Moon Bay City Council Repeals Cap on Annual Rent Increases

The Half Moon Bay City Council voted recently to repeal regulations that cap annual rent increases for some older multifamily housing and require landlords to register units with the city. Approved by a vote of 3-2, the repeal of laws enacted in 2024 takes effect on June 5.

The Bay Area community joins other California cities, including Concord and Salinas, that have moved to scale back local rent control programs operating on top of state law, the California Apartment Association said. Half Moon Bay’s rent cap applies to certain multifamily properties built before Feb. 1, 1995, limiting annual increases to the lesser of 3% or 80% of the Consumer Price Index.

For the 2025-26 rental year, the allowable increase was 1.23%, reported CAA. The statewide Tenant Protection Act caps rent changes to the lesser of 5% or CPI.

The repeals were supported by CAA and advocated by the San Mateo County Association of Realtors (SAMCAR). “The impact of these policies was not theoretical and was already being felt, including property owners operating on razor-thin margins or at a loss, deferred maintenance on rental properties, housing providers choosing to sell rather than continuing to operate under unsustainable conditions, and potential buyers stepping away due to restrictive cap structures,” SAMCAR said earlier this year.

In San Diego, Good Life Property Management saw the repeal as a harbinger. “While Half Moon Bay is hundreds of miles from us, the political signal matters for every San Diego landlord, Orange County landlord, and Riverside County landlord watching their own city councils,” the company posted on Instagram.

Pictured: Pillar Point Harbor in Half Moon Bay.