Rent control vs. rent stabilization: what is the difference?

“Rent control” usually means a hard limit on what a unit may rent for. “Rent stabilization” means the rent can rise each year, but only by a set percentage. In everyday use both are called rent control; the exact meaning depends on the city.

Checked against official sources on November 8, 2026. Last site change: November 8, 2026 (changelog).

The short answer

Rent control (strict)Rent stabilization
What is limitedThe rent itself (a maximum rent for the unit)The yearly increase (a percentage)
Typical yearly increaseSmall, set by the agencyTied to inflation or set by a board, e.g. New York City 0%, Los Angeles 3%, Los Angeles County (unincorporated) 1.919%, San Francisco 1.6%
After the tenant moves outOften stays regulatedIn California resets to market (Costa-Hawkins); in NYC usually stays stabilized
ExampleNYC rent control: about 24,000 apartmentsNYC rent stabilization: about 997,000 apartments; LA, SF, D.C. ordinances

New York City: two separate systems

According to New York's housing agency (HCR), rent control is the older system: it generally applies to buildings built before February 1, 1947 where the tenant, or a qualifying family successor, has lived continuously since before July 1, 1971. Rent stabilization generally covers buildings of six or more units built between 1947 and 1974, plus units in newer buildings that took certain tax benefits. Stabilized rents rise by the percentage the Rent Guidelines Board sets each year: 0% (1-year and 2-year leases) for leases from October 1, 2026.

California and elsewhere

California cities call their ordinances rent control or rent stabilization, but they work like NYC stabilization: an allowed yearly percentage for older buildings, with the rent reset to market when a tenant leaves (state Costa-Hawkins Act). Current figures: Los Angeles 3%, San Francisco 1.6%, Berkeley 1.0%, Santa Monica 2.6% (max $70), Oakland 2.3%. Units not covered locally fall under the statewide cap (AB 1482), which is also a stabilization-type limit. Washington, D.C. (4.1% (2.1% elderly or disabled)) and St. Paul (3%) have their own systems; Oregon and Washington cap increases statewide.

Does rent control work?

Economists debate it. Studies generally find that it keeps covered tenants in their homes and lowers their rents, while some owners convert or withdraw units, which can reduce the rental supply and raise rents for uncovered units. Stabilization with inflation-linked increases and exemptions for new construction is the form most places use today.

See all current figures on the rent control by city page and state rules on rent increase laws by state.

Sources: HCR Fact Sheet #1 · 2023 NYC Housing and Vacancy Survey · local sources on each city page. Not legal advice.