Minimum wages have roughly tracked inflation over the past two decades, but the price of rental housing has vastly outpaced it. This has resulted in the tightening of a financial vice on working people. On one side is a wage floor which has been nearly stagnant for two decades when inflation-corrected (this has increased in Pasadena since 2016, but not nearly enough to keep up with rents). On the other are skyrocketing housing costs which eat up a larger and larger fraction of household income. It is not enough to stop tightening the vice and leave it at that, which is what we would achieve by fixing rent increases to inflation. We must actively loosen the vice, giving working families room to breathe and to save money for their futures. By limiting increases to a value below inflation, and assuming that the long term trajectory of wages will roughly track CPI, we loosen the vice.
We chose 75% of inflation based on an examination of what has worked well for LA-area cities that have already implemented rent control. Both Santa Monica and West Hollywood have had rent control for decades, and these policies have protected their communities from rapidly increasing housing prices. Both cities have found that 75% CPI strikes a good balance between easing financial burdens on Tenants and providing Landlords a Fair Return. In short, we have chosen 75% because it works for Southern California.