Two propositions on California’s November ballot will impact a pair of large USC demographics, renters and those earning minimum wage.
People under 25 make up nearly a third of minimum wage workers in California, according to the Legislative Analyst’s Office. Proposition 32, if passed, would raise the statewide minimum wage to $18 by January 2025.
Proposition 33 allows cities to control rent on single-family homes and apartments — including on-campus housing — by repealing the Costa-Hawkins Act, a law permitting landlords to set initial pricing for housing built after January 1995.
Vanessa Ramirez, a sophomore studying biological science at USC, lives in an apartment in the West Adams neighborhood. She said her rent is reasonable for the area but the current rate leaves her little extra money to pay bills and buy food.
“Realistically I’m like, ‘Why is it so much?’ I practically just need a place to sleep,” Ramirez said.
Proposition 32 - An $18 minimum wage
While the statewide minimum wage is $16 with annual adjustments for inflation, the hourly minimum wage in Los Angeles County is $17.28. Prop. 32 seeks to round the number up.
Supporters of the proposition include the California Democratic Party, labor unions such as Unite Here and anti-poverty activist and entrepreneur, Joseph Sanberg, who spent over $10 million in his efforts to get the measure on the ballot.
Gabriel Harris, a sophomore studying architecture, lives in the USC Village and spends between $6,500 to $8,000 a semester on rent. He said he’s currently between jobs, but when he begins his search, he’ll be looking at minimum wage opportunities and supports Prop. 32.
“I mean, an extra $60 a month, of course,” Harris said. “When you’re a college student, you try to hold onto any change you have.”
A 20-hour work week at the new rate would yield an additional $57 per month, or nearly $700 more per year before taxes.
In September 2023, Gov. Gavin Newsom signed a bill guaranteeing a minimum wage of $20 for fast food workers. Ramirez, who left her job at Little Caesar’s to focus on her degree, is skeptical of more wage increases and echoes a driving argument of many Proposition 32 opponents.
“I would like to get paid more,” Ramirez said. “But… why is it that we got a raise, the minimum wage went up, but everything else went up?”
The opposing parties on Prop. 32 wield dueling studies about the occupational impacts of the proposed measure. Supporters cite a study from UC Berkeley that found “no significant disemployment effects” resulting from 2022′s minimum wage increase to $15, while opponents refer to a survey of West Hollywood businesses in which 24% of employers said they had to lay off workers as a result of this January’s minimum wage ordinance.
Proposition 33 - Cities decide rent caps
Rent control is not new in California, but since the mid-90s, the Costa-Hawkins law has limited cities’ ability to enforce it. Housing built after January 1995 — including popular student housing such as Tuscany Apartments, The Lorenzo and University Village — do not have to adhere to rent ceilings.
Prop. 33 would repeal Costa-Hawkins and allow cities to implement rent control. The measure comes in response to many LA County residents facing exorbitant annual rent hikes from landlords. Nearly 30% of renters in California spend at least half their monthly income on rent.
Opponents of the measure are primarily realtor groups such as California Apartment Association and California Association of Realtors, who have collectively raised $50 million to combat the measure. They argue that Prop. 33 will exacerbate the housing shortage.
“Even though it might be a little more tiring to find an apartment available, I think generally offering a bigger population of homes is just more important to me,” Harris said.
Brandon Leong, a junior studying electrical engineering, lives in an apartment off-campus and argues that like everything else in the economy, unregulated is better.
“I think that affordable housing will be a natural consequence of just letting the economy do its thing,” Leong said. “Because if landlords charge too much and people can’t afford it, they are forced to drive down their prices.”
Vermont Sen. Bernie Sanders endorsed Prop. 33, and though Vice President Kamala Harris has not formally endorsed the measure, she said she supports rent control.
“We will take on corporate landlords and cap unfair rent increases,” the vice president told supporters at an Atlanta rally.