Costa-Hawkins is a 1995 California law that exempts post-February-1995 construction, single-family homes, and condominiums from local rent control ordinances. It has survived three statewide repeal attempts.
Costa-Hawkins is the statute that creates the "post-1995 exemption" — buildings with a certificate of occupancy on or after February 1, 1995 are exempt from LA City RSO, LA County RSTPO, and most local rent control regimes. They remain subject only to AB 1482 statewide caps.
Prop 10 (2018), Prop 21 (2020), and Prop 33 (November 2024, failed 62-38) all attempted to repeal Costa-Hawkins. Each failed. The statute remains in effect.
Costa-Hawkins is the single legal anchor of LA's post-1995 multifamily premium. Post-1995 buildings trade at cap rates 50-75 basis points tighter than pre-1978 same-submarket equivalents. If Costa-Hawkins is ever repealed, billions in LA multifamily value would compress. That risk is real but has not materialized across three ballot cycles.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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