Gov. Gavin Newsom has issued an executive order extending rent-gouging protections for residential rental properties in Los Angeles County following the January 2025 firestorms. The order, signed today, Friday, March 7, 2025, continues restrictions on rent increases and evictions while expanding certain exemptions that may impact rental housing providers. 

What’s new and continuing in this order

  • Rent cap extension – The 10% cap on rent increases that was set to expire March 8, 2025, is now extended through July 1, 2025. This extension continues to apply under Penal Code Section 396, which restricts rent increases beyond 10% above pre-emergency levels for both existing tenants and new leases within Los Angeles County.
  • Exemptions for newly constructed rental housing – Newly built rental properties with a certificate of occupancy issued after Jan. 1, 2025, are exempt from rent cap restrictions, providing an incentive for continued development during the recovery period.
  • Exemptions clarified and expanded – Prior orders exempted certain large single-family homes (four+ bedrooms) in designated high-rent ZIP codes from rent caps if they had not been rented in the year before the emergency. This exemption remains in effect, providing flexibility for property owners with vacant high-value homes and ensuring they are not subject to the temporary price restrictions.
  • Eviction protections continue – The order prohibits landlords from evicting tenants for the purpose of re-listing units at a higher price while emergency protections are in effect. This measure aims to prevent displacement and ensure housing stability during the ongoing recovery efforts.

What this means for rental housing providers 

With the rent cap and eviction restrictions extended until July 1, 2025, landlords must continue to comply with price-gouging protections while navigating local rent control ordinances. The exemptions for certain single-family homes and new housing provide flexibility, but landlords should review their properties’ eligibility carefully. 

Timeline: Housing orders in response to the firestorms

  • Today, Friday, March 7, 2025 – Newsom extends rent caps and eviction protections through July 1, 2025, and adds an exemption for newly constructed rental housing.
  • Feb. 4, 2025 – The governor expanded price-gouging protections to apply to leases of any length, preventing landlords from bypassing restrictions by offering 366-day leases.
  • Jan. 17, 2025 – Newsom issued an order prohibiting evictions for tenants who sheltered displaced fire survivors.
  • Jan. 16, 2025 – A previous executive order extended the rent cap through March 8, 2025.
  • Jan. 7, 2025 – A state of emergency was declared, automatically triggering Penal Code 396, which caps rent increases at 10% post-emergency.