On November 3, voters in three Bay Area cities will decide rent control measures that reach well beyond a simple cap on annual increases. Two of them, in Redwood City and San Pablo, would create brand new rent programs. The third, in Berkeley, would change one of the oldest programs in the state.
If you own apartments in any of these cities, or you are thinking about buying there, the outcome will show up in how buyers underwrite your building. Here is a plain summary of each measure.
Redwood City: Measure E
Measure E is a citizen initiative backed by Faith in Action. The City Council placed it on the ballot rather than adopting it outright, and several council members raised concerns about its cost and its effect on small owners.
What it would do:
- Rent cap: Annual increases limited to 60% of the change in the local Consumer Price Index, with a maximum of 5%.
- Rent rollback: Rents would be rolled back to October 29, 2025 levels.
- Just cause eviction rules.
- Relocation payments for no fault terminations equal to four times HUD's fair market rent or $12,000, whichever is greater, with additional payments for certain protected tenants such as seniors over 62 and tenants with disabilities.
- A tenant safety plan for construction or repairs in a tenant's unit.
- A new city program with a rent registry, per unit fees paid by owners, and a petition process, including a way for owners to seek a fair return.
Which buildings are covered: state law (the Costa Hawkins Act) exempts single family homes, condos and buildings built after February 1, 1995 from local rent caps. Because of that, the city's consultant estimated the cap would reach only about 20% of Redwood City's housing. But exempt from the cap does not mean exempt from the whole ordinance. The tenant protections apply to a broader group of units.
The cost question: the measure sets owner fees at $84 or $120 per unit. The city's consultant, Economic & Planning Systems, estimated the fee needed to actually cover the program would be $246 to $622 per unit per year, leaving the city a gap of roughly $4 million to $10.1 million a year. If the measure passes, expect pressure for higher fees.
Redwood City is part of the San Mateo County market Philip covers. See his San Mateo County apartment sales page for recent sales and pricing.
San Pablo: Measure S
San Pablo's Measure S uses the same formula as Redwood City, 60% of CPI, but with a lower ceiling of 3%. The cap would apply to multi unit rentals built before February 1, 1995, and also to mobile homes and mobile home spaces.
Tenants living in their units on July 1, 2025 would use the rent they paid on that date as the starting point. The measure also adds just cause eviction rules, relocation payments in certain cases, a complaint and petition process, a fair return petition for owners, and owner fees of up to $120 per unit. The city's consultant, RSG, estimated the program could cost up to about $2.4 million a year to run.
San Pablo voters will also see Measure R, a separate sales tax measure, on the same ballot.
Same formula, different ceilings. At 3.8% inflation, both caps allow about 2.3% (3.8% times 60%). The difference shows up when inflation runs hot. San Pablo's 3% ceiling starts to bite once CPI passes 5%. Redwood City's 5% ceiling only binds once CPI passes about 8.3%.
Berkeley: Measure X
Berkeley already has rent control. Measure X would amend its ordinance rather than build a new one. The main changes:
- A 10% limit on increases in any 12 month period, including increases that use previously banked annual adjustments. Owners could still bank unused increases, but could not take a large catch up increase all at once.
- Broader tenant organizing protections at buildings with five or more units.
- Limits on claiming certain exemptions when a property became exempt only after the current tenant moved in, with transition rules for units already exempt before November 3, 2026.
- Registration fee deadline moving to September 30.
The banking change matters more than it looks. Many Berkeley owners hold back increases for long term tenants and bank them for later. If they can only recover 10% a year, some owners will raise rents every year instead of waiting. And for buyers, the upside from banked increases becomes slower to capture.
San Pablo and Berkeley are both East Bay markets. See Philip's East Bay apartment sales page.
What this means for owners and buyers
For sellers: buyers price regulation. When a city adds a rent cap, a rollback, relocation costs and new fees, buyers lower what they will pay for the income. If you own in Redwood City or San Pablo, the rules your building is sold under could change in a matter of weeks.
For buyers: read the whole ordinance, not just the cap. Ask which parts apply to the building, what the relocation exposure is, and how the rollback date affects the current rent roll.
For everyone: check the build date. Buildings built after February 1, 1995 are outside local rent caps under state law, but may still be covered by eviction, relocation and registration rules. For a related change in San Francisco, read Philip's post on the new unpaid rent eviction rule.
Common questions
What is Redwood City Measure E?
Measure E is a citizen rent control initiative on Redwood City's November 3, 2026 ballot. It would limit annual rent increases to 60% of the change in the local Consumer Price Index, with a maximum of 5%, roll rents back to October 29, 2025 levels, and add just cause eviction rules, relocation payments and a city rent registry funded by owner fees.
What is San Pablo Measure S?
Measure S is a rent control initiative on San Pablo's November 3, 2026 ballot. It would limit annual increases to 60% of CPI or 3%, whichever is lower, for multi unit rentals built before February 1, 1995 and for mobile homes and mobile home spaces. Rents for tenants in place on July 1, 2025 would start from what they paid on that date.
What would Berkeley Measure X change?
Measure X would amend Berkeley's existing rent ordinance. It would limit any rent increase to 10% in a 12 month period, including increases that use banked annual adjustments, expand tenant organizing protections at buildings with five or more units, limit certain exemptions that arise during an existing tenancy, and move the registration fee deadline to September 30.
Do these rent caps apply to buildings built after 1995?
Generally no. Under the Costa Hawkins Act, buildings built after February 1, 1995, condos and single family homes are exempt from local rent caps. They may still be covered by other parts of an ordinance, such as just cause eviction, relocation and registration rules.
How could these measures affect the value of my apartment building?
Buyers price regulation into what they will pay. A rent cap, a rollback, relocation costs and new fees all reduce the income a buyer can count on. Philip Batlin can prepare a free, confidential opinion of value that shows where your building stands today. Request one here.
Thinking about selling before the rules change?
If you own an apartment building in Redwood City, San Pablo, Berkeley or anywhere in the Bay Area and want to know what it is worth today, and how these measures could change that, Philip Batlin will prepare a free, confidential opinion of value based on your rent roll, expenses and recent comparable sales. Request a free, confidential opinion of value or call Philip at (415) 625 2189.
Philip Batlin, Managing Director Investments, Marcus & Millichap. CA DRE 01873218. This post is general information, not legal advice. Read the full measure text and talk to a landlord tenant attorney about your property.
Sources: Bornstein Law, Bay Area Rent Control Ballot Measures 2026; The Almanac, Redwood City voters to decide on rent control in November; KQED, As Costs Rise, Voters in 3 Bay Area Cities Could Cap One of Them: Rent; City of Berkeley council item placing the measure on the ballot.
