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alifornia voters have once again rejected efforts to repeal the Costa-Hawkins Act, a 1995 law that shields landlords from proliferating local rent control ordinances. On November 5, Prop. 33 was defeated by a margin of 61.4% to 38.6%, marking the third time since 2018 that voters have sided with landlords on this issue.

    The AIDS Healthcare Foundation, led by CEO Michael Weinstein, had poured $50 million into the campaign to pass Prop. 33, which would have repealed Costa-Hawkins and allowed local governments to impose stricter rent controls. However, the opposition campaign, backed by property owners and real estate groups, raised over $124 million and successfully framed the issue as a threat to housing affordability.

    Henry Manoucheri, CEO of Universe Holdings in Los Angeles, credited the industry's efforts with preventing what he called "left lunatic radical policies" from taking hold. His company has invested heavily out-of-state due to concerns about California's regulatory environment.

    Economists argue that rent control can have unintended consequences, such as reducing rents in controlled buildings while causing a housing shortage and lowering quality. Jared Barton, a professor at California State University Channel Islands, pointed to restrictive zoning laws and lack of new development as the main drivers of rising rents in California.

    The campaign against Prop. 33 was well-funded, with property owners contributing over $113 million. Industry groups like Essex Property Trust and Equity Residential were among the largest donors. The total cost of the campaigns for and against Prop. 33 reached $163 million, making it one of the most expensive ballot measures in the country this year.

    The outcome is seen as a victory for landlords, who are now likely to face less opposition from AIDS Healthcare Foundation following the expected passage of Prop. 34, which would limit the organization's ability to use its prescription drug revenues for political campaigns.