CPI Update 2025: New Allowable Increases Go into Effect Under State Law (A.B. 1482)
For those of us subject to statewide rent control under Assembly Bill 1482, also known as the Tenant Protection Act of 2019, rental housing providers are entitled to new rent increase limits effective as of August 1st of every year.
Under Assembly Bill 1482, annual rent increases are limited to the lesser of (i) CPI + 5%, or (ii) 10%. This year’s CPI for the Los Angeles Area measured as of the month of April 2025 is 3.0%, which makes the maximum allowable annual rent increase under state law equal to 8.0% (5% plus CPI of 3.0%).
The U.S. Department of Labor and Statistics has published the updated Consumer Price Index (CPI) for major urban areas. The California (as a whole) CPI is still pending from the California Department of Industrial Relations; however, CPI data is now available for urban areas across California such as Los Angeles-Long Beach-Anaheim, Riverside-San Bernardino-Ontario and others.
Maximize Your Property’s Value with Expert Guidance
With the recent 3.0% CPI adjustment, California’s statewide rent control permits an 8.0% annual rent increase, effective August 1st. This presents a strategic moment for property owners to enhance their investment returns.
At Lucrum Real Estate, we specialize in multifamily investment sales, offering comprehensive advisory services to help you navigate market changes and maximize property value.
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Contact us today to discuss how we can assist you in optimizing your property’s potential.
Source: AGGLA