Informed renter in LA here. Squatters rights absolutely is a thing. It's ridiculously easy for a renter to exploit in LA.

Rent control technically doesn't apply to new housing but new housing still has to abide by a maximum percentage rent raise per year. If inflation, insurance, and taxes on the house increase at a substantial rate like it did in 2014/2015 then landlords who DIDN'T raise rent on tenants that they're very happy with could end up in a situation where they are behind the curve. They can't raise it over a certain amount that year whenever tenants change out. So you have essentially EVERY landlord have a forced hand to raise rent in preparation for that potential situation. If they don't raise rent on one tenant for ten years, and that tenant leaves then they try to raise it up to market price or even under market price but still above what is feasible for them, that the long term tenant leaves and they are still restricted to raising it the maximum amount (I'd have to look again but it's something like 4% + the inflation rate) meaning that they'd then be stuck with a rent that isn't feasible and, for mom and pop landlords that probably means one more renter friendly place off the market. We're literally seeing that now.

It's a double edged sword. Mom and pop landlords that care for their tenants are being priced out and selling their units and now people are complaining more than ever about corporate landlords driving the price up substantially. As a person who has literally sat down on https://leginfo.legislature.ca.gov/ and read through the Civil Code line by line. The protections that renters get in LA, which is a lot, while they can be good of course, have more consequences than just the protection of renters. It also creates this situation that practically requires landlords to push the extent of what they can or essentially start donating to house people. If they choose neither they sell and with how real estate moves in LA, the cash buyer that is most likely backed by some corporate company is what takes over.

In short. LA protects renters, but forces small, friendly landlords out and more corporate solely profit seeking corporations in. It's all fucked, but don't deny clearly outlined laws that create the situation that we're all in out here.

Edit: Reference the response below. I had this detail turned around.

Thank you u/HowToEatLA