Problems with Rent Control

“While rent control appears to help current tenants in the short run, in the long run it decreases affordability, fuels gentrification, and creates negative spillovers on the surrounding neighborhood, the left-leaning Brookings Institution reported in 2018.”

As reported in the conservative Daily Caller 9/18/19

“The economists are right, and the populists are wrong. Rent-control laws can be good for some privileged beneficiaries, who are often not the people who really need help. But they are bad for many others.”

As reported in the left-leaning Washington Post 9/21/19

When rent control ended in Massachusetts in 1994, only 6% of rent-controlled tenants qualified as low- or moderate-income, elderly, or disabled to receive one or two additional years of rent control, according to city statistics for Boston, Cambridge, and Brookline, the three cities that had rent control for 25 years.

Pushes rents up, harms neighborhoods

New research on rent control’s impact on tenants and the rental housing market (Read article.)

brookings.edu/research/what-does-economic-evidence-tell-us-about-the-effects-of-rent-control/

Posted in Problems with Rent Control, Rent Control | Comments Off on Pushes rents up, harms neighborhoods

Reduces supply, increases market rents

In the long run, rent control pushes rents up and harms neighborhoods (Read article.)

https://web.stanford.edu/~diamondr/DMQ.pdf

Posted in Problems with Rent Control, Rent Control | Comments Off on Reduces supply, increases market rents

Rent control never stays “mild,” it only gets stricter and stricter

  • “Mild” rent control is the camel’s nose in the tent. 
  • Rent control pays tenants every month to vote for pro-rent-control lawmakers and to demand lower and lower rents.
  • Rent control is not a housing policy. It is a political power
Read More “Rent control never stays “mild,” it only gets stricter and stricter”
Posted in Problems with Rent Control | Comments Off on Rent control never stays “mild,” it only gets stricter and stricter

Impacts of RENT CONTROL on types of property owners

(Based on past rent control systems in Massachusetts. Rent control can vary by city or by state. Oregon California’s recently enacted rent control covers all rental units in each state except single-family homes in some cases. Proposals for nationwide rent … Read More “Impacts of RENT CONTROL on types of property owners”

Posted in Problems with Rent Control, Rent Control | Comments Off on Impacts of RENT CONTROL on types of property owners

ECONOMIC IMPACTS of rent control

The simple act of pushing rents below market value has widespread negative impacts. Giving local-option rent control would affect the state’s entire economy.

Devaluation  

The initial vote to impose rent control immediately lowers the value of all affected housing. … Read More “ECONOMIC IMPACTS of rent control”

Posted in Problems with Rent Control, Rent Control | Comments Off on ECONOMIC IMPACTS of rent control

The choice: Rent control •OR• create more housing

Economists say repeatedly:  The cause of high rents is lack of a sufficient supply of rental housing. It follows, therefore, that to bring rents down broadly, we must create more rental housing units. 

Rent control, however, stops all new rental … Read More “The choice: Rent control •OR• create more housing”

Posted in Problems with Rent Control, Rent Control | Comments Off on The choice: Rent control •OR• create more housing

Rent control widely debated

Oregon recently passed statewide rent control with 7% annual rent increase limits. California also recently passed statewide rent control, but with lower 5% annual rent increase limits. Presidential candidate Bernie Sanders recently proposed nationwide rent control with still-lower 3% annual … Read More “Rent control widely debated”

Posted in Problems with Rent Control, Rent Control, Sticky Post | Tagged , , , | Comments Off on Rent control widely debated

Lest we forget how bad rent control is

25 years of rent control in Cambridge, Massachusetts

A national debate is taking place on whether rent control is an effective housing policy. Yet in 1994, liberal Massachusetts voters rejected rent control in a statewide ballot question initiated by the … Read More “Lest we forget how bad rent control is”

Posted in Problems with Rent Control, Sticky Post | Tagged , | Comments Off on Lest we forget how bad rent control is

Did you buy your rental property after rent control ended?

Have you lived under rent control? 

Rent control in Massachusetts ended in 1994, thanks to SPOA. Many younger owners today have NO IDEA how rent control will change their relationship to tenants – once the local rent board takes over … Read More “Did you buy your rental property after rent control ended?”

Posted in Problems with Rent Control, Rent Control | Comments Off on Did you buy your rental property after rent control ended?