LA Cracks Down on ‘Renovictions’ with New Tenant Protections

Los Angeles just put a one-year freeze on eviction-for-renovation tactics, aiming to protect tenants from displacement.

Jordan B.
March 17, 2025

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Good morning. Los Angeles just put a one-year freeze on eviction-for-renovation tactics, aiming to protect tenants from displacement. But landlords warn the move could shrink rental supply and stall much-needed repairs.

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Market Snapshot

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*Data as of 03/14/2024 market close.

Tenant Rights

Los Angeles Bans 'Renovictions' in Latest Tenant Protection Move

LA city officials have enacted a temporary ban preventing landlords from evicting tenants under the guise of substantial renovations.

What happened: The Los Angeles City Council has placed a one-year freeze on evictions tied to major renovations, blocking landlords from forcing out tenants to remodel non-rent-controlled properties. The ban applies to all rental housing, including single-family homes, condos, accessory dwelling units, and multifamily buildings.

Landlord pushback: Property owners argue that the moratorium could backfire, making it harder to maintain and improve rental housing. The Apartment Association of Greater Los Angeles cautions that landlords unable to renovate may have no choice but to sell their properties "as is," leading to potential demolitions and a shrinking rental supply.

Too much red tape: Critics also point to California’s Tenant Protection Act, which already regulates substantial remodels. The law ensures that when major renovations require tenants to vacate, they receive financial assistance, providing a framework for balancing tenant rights with necessary property upgrades.

The opposition says: Supporters of the ban argue that landlords have used "renovictions" to displace tenants and raise rents. City data indicates that about 100 notable remodel-related evictions have occurred in the past two years, fueling concerns about unfair displacement.

➥ THE TAKEAWAY

Why it matters: LA’s latest tenant protections add another layer to the ongoing battle between housing affordability and property owner rights. While the moratorium aims to curb displacement, it may also deter necessary repairs and reduce available rental stock.

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✍️ Editor’s Picks

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More debt: Troubled US CRE debt restructuring reached $18B in Q4 2024, as high interest rates and maturing loans threaten banking stability.
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Boost demand: Copper nears a five-month high at $9,810.50 per ton as China unveils plans to boost demand, offsetting pressure from U.S. tariffs.

🏘️ MULTIFAMILY

In focus: FHFA Director Bill Pulte says GSE privatization isn't an immediate priority, focusing instead on reducing fraud and enhancing efficiency.
Supply test: Oklahoma City’s multifamily occupancy hit 94.1% in Q4 2024, but new supply could push it down to 93.5% by year-end.
Brooklyn buyout: Steiner NYC secured a $420M recap to fully acquire The Hub, a 750-unit tower, with $62.5M in preferred equity from Meadow Partners.
Chicago rents: Downtown rents surpassed $3,000 for the first time, as limited new supply gives landlords the upper hand until at least 2027.

🏭 Industrial

Bay Area build: Rockefeller Group plans a 442K SF industrial distribution center in Antioch, CA, expanding logistics capacity on the region’s eastern edge.
Atlanta deal: Meniscus Group acquired a 103K SF industrial facility in Temple, GA, fully leased to Janus International, which previously sold it in 2021 for $6M.
Chew on that: Chewy is downsizing operations at its 663K SF Dallas distribution center, eliminating 674 jobs as consumer demand for pet products slows.

🏬 RETAIL

Not forever: Forever 21 plans to close over a dozen Southern California stores, with a full shutdown of its 350 remaining locations possible amid bankruptcy.
Union Square: Luxury brands John Varvatos and Nintendo are set to open in San Francisco’s Union Square, signaling renewed retail momentum in the struggling district.

🏢 OFFICE

Bailout: SL Green and RXR modified a $940M CMBS loan to exit special servicing after losing a tenant that occupied 30% of One World Plaza.
Federal Sell-Off: The GSA's plan to offload 440 government buildings, including the FBI and DOJ headquarters, adds uncertainty to the office market, especially in D.C.