The Salinas rental market is facing an alarming reality—investment dollars are drying up. Over the past several months, the message from investors, developers, and property owners has been loud and clear: Salinas’ extreme rent control policies are driving investment away.

When pitching apartment deals in Salinas, the response has been resounding:

  • “Why would we invest in a city that has harsh rent control?”
  • “Why would we not take our capital to a non-rent control city or state?”
  • “Why would we invest in new projects or ADUs when the city sends us a message that we are bad?”

This isn’t just speculation—it’s already happening. Since July 2024, there have been only two sales of 5+ unit apartment buildings in Salinas. One more is pending, but only because it is selling at a deep discount. This means fewer new projects, less housing availability, and an overall weakening of the rental housing market in Salinas.

The Bigger Picture: A Warning from Los Angeles

Salinas is not the only city dealing with the fallout of aggressive tenant protection policies. Los Angeles recently faced backlash over a proposed rent freeze and eviction ban, with public officials reconsidering the measure due to its long-term economic consequences.

As District 12 Councilmember John Lee stated:

“When we as a city tell developers that at any moment the city council can commandeer your investment, who is going to want to build in this city? Who is going to want to do business here?”

This is the exact question Salinas should be asking itself. If cities like Los Angeles—where housing demand is high—are stepping back to rethink extreme rent control, why is Salinas doubling down on policies that drive away the very investors and developers needed to create more housing?

The Future of Salinas Housing

The reality is simple: when investors walk away, development slows, housing stock declines, and affordability worsens. We need policies that encourage investment, not punish it.

Salinas leaders must take a hard look at the data and recognize the long-term damage of their approach. Rent control is not a solution—it’s a barrier to building the housing we desperately need. If we continue down this path, we risk turning Salinas into a market where no one wants to invest, no one wants to build, and ultimately, no one can find a place to live.

Now is the time for change. It’s time for Salinas to adopt policies that balance tenant protections with economic sustainability—before it’s too late.

Concord council to reconsider rent control, ‘just cause’ eviction policies