Under the Los Angeles Rent Stabilization Ordinance, landlords can only raise rents in accordance with the Consumer Price Index for most apartments built before 1978. During recent times, the annual increase has been capped at three percent. Beginning in July, landlords can raise rents by four percent. The higher index leading to the increased cap is likely due to lower unemployment and other strong economic indicators in the area. With rents on the rise, even a one percent rent hike adds pressure on tenants struggling with affordability. As of now, Santa Monica and West Hollywood have not approved similar annual increase hikes.