San Diego’s Red Tape Leads to Higher Rents

For Immediate Release

San Diego’s Red Tape Leads to Higher Rents, New Study Shows Tenant Protection Ordinances Increase Rents by An Estimated $1,764 Annually: MetroSight

MEDIA CONTACT: Tanya Castaneda | 619.764.9874 | tanya@prmconsult.com

SAN DIEGO, CALIF. (August 27, 2025) – A new study confirms what housing providers in San Diego already know: overregulation increases rents, especially for lower-income renters and those in small properties. Burdensome housing regulations in the San Diego metropolitan area measurably increase the cost of rent – particularly for lower-income renters and those renting from small multifamily properties, the study found.

The report, which examined the impact of government regulations on rents in San Diego and other major housing markets nationwide, was released in August 2025 by MetroSight, sponsored by the National Apartment Association (NAA) and National Multifamily Housing Council (NMHC).

Key findings for the San Diego metropolitan area include:
Eviction laws, which include state law and local ordinances known as Tenant Protection Ordinances (TPOs), are estimated to increase rents about $1,764 per unit annually.
Source-of-income regulations, which include state law and some local ordinances such as the City of San Diego’s law, are estimated to increase rents between $1,416 to $1,584 per unit annually.
Resident screening laws, which are statewide, are estimated to increase rents by between $408 to $1,020 per unit annually.
“These are not abstract numbers,” said Alan Pentico, Executive Director of the Southern California Rental Housing Association (SCRHA). “We’re seeing the impacts right here in San Diego. When local governments pile their own Tenant Protection Ordinances on top of state law, the result is confusion, lawsuits, and higher costs for everyone – with lower-income renters suffering the most.”

Pentico recently highlighted some of these problems in a published column. He noted that San Diego, Chula Vista, and Imperial Beach have all passed overlapping rules that create a patchwork of notices, deadlines, and disclosure requirements. SCRHA has had to create 16 different forms – in addition to normal leasing documents – just to keep members compliant across three cities.

“The irony is that these rules are supposed to help renters, but they’re making housing more expensive,” Pentico said. “Moreover, when smaller housing providers get buried in red tape, they leave the market. With fewer homes to choose from, renters are the ones who suffer.”

These housing regulations increase the cost of rent, particularly for lower-income renters and those renting from small multifamily properties, the study found. These households are the most vulnerable in our housing system, yet they end up carrying the heaviest burden of compliance costs that landlords have no choice but to pass on. Lower-income renters saw the largest increases in rent across all policies, and smaller buildings of between 2–4 units had the highest increases.

San Diego was among the metropolitan areas analyzed in the study, which used two distinct and separate datasets, one from CoStar Group – which included market-level data from 391 metros between 2000 and 2024 – and another from the U.S. Census Bureau’s American Community Survey (ACS), which featured 307 metros between 2005 and 2023.

The MetroSight study underscores the need for policy solutions that focus on building more homes and keeping housing providers in the market.

“As housing affordability continues to be a nationwide concern requiring action from state, local and federal lawmakers, this study importantly shows how misguided regulations have the ability to increase monthly costs for renters,” said NAA President and CEO Bob Pinnegar. “Now more than ever, our nation needs responsible, sustainable policy solutions that, instead of raising costs, work to boost the supply of housing and improve affordability long-term.”

ABOUT SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION:
The Southern California Rental Housing Association is the region’s leading trade association serving the rental housing industry. We provide education and advocacy to individuals and companies who own, manage, or provide services to the rental housing industry throughout Southern California. For over 100 years, Southern California Rental Housing Association has provided members anda the industry with education and training, networking opportunities, and critical legislative advocacy. As a leader in the industry, the Southern California Rental Housing Association represents more than 2,400 members and is one of the most highly respected rental housing associations. Affiliated with the National Apartment Association, our mission is to create a thriving rental housing community through advocacy, education, and collaboration. For more information, visit www.socalrha.org.

Alan Pentico
Executive Director, Southern California Rental Housing Association