Oakland City Council Considers Proposal to Limit City’s Highest Annual Rent Hike in History

By Brandon Patterson

Last month, Oakland housing regulators announced that starting in July, landlords would be permitted to raise rents by up to 6.7% — the highest annual increase in the city’s history. The announcement prompted an outcry from renters at City Council meetings and hearings in recent weeks – and calls to local councilmembers.

Now, City Council is considering a proposal to limit the rent increase and give renters, many of whom are already struggling, some needed relief.

In many Bay Area cities, where housing has been an issue for decades, the amount landlords are allowed to raise rents every year is tied to inflation. This stabilizes rents by limiting increases, ensuring more security for renters’ households.

In Oakland, landlords can raise rents up to 100% of the inflation rate. So, a 6.7% increase in inflation this year means that landlords can raise rents the same percentage. For an apartment rented for $2,000 a month, the 6.7% rent increase would mean that a tenant’s rent would increase more than $100 to $2,134 a month.

This deviates from other cities like Berkeley and San Francisco, however, where the annual allowable rent increase is capped at 65% and 60% of inflation, respectively, according to Oaklandside. That means that for the same $2,000 apartment, rents would increase to about $2,087 in Berkeley or $2084 in San Francisco — about $50 less.

Housing justice and tenants’ rights groups have long criticized how differently Oakland calculates its rent hikes from other cities, and earlier this month, District 3 Councilmember Carroll Fife introduced a bill to bring Oakland’s calculator more in line with other cities. The bill would reduce the allowable annual rent increase to just 60% of inflation. It would also cap the allowable rent increase to 3% of the current rent, even if the inflation rate would allow for a higher one.

“I do want to create some security for renters,” Fife told NBC Bay Area in a recent interview. “Oakland is a majority renter city: Over 60% of the residents of the city of Oakland are renters, and it doesn’t make sense to put them in this type of jeopardy.”

“It’s not like we’re coming out of COVID—it’s all around us,” Mark Dias, co-chair of the Oakland Tenants Union, told Oaklandside. “If tenants weren’t able to financially recover from that period of time, they’re also going to be hit with an increase that is legal,” adding that he was “astonished” by the pending rent hike this year.

But some property owners are pushing back, arguing that increases in the cost of operating housing necessitates the higher rent hike. “There has also been an extraordinary increase in everything: water, gas, electric, sewer, repair services, equipment, appliances, plumbing,” Derek Barnes, CEO of the East Bay Rental Housing Association, told NBC Bay Area. “You also have a housing stock that’s older, that really needs a lot of maintenance.”

The law is scheduled for a vote on May 31. If it passes before the current allowable rent hike goes into effect on July 1, then the lower allowable increase will take effect instead.

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