Get the Facts
Articles
Academic research and experience show that rent control doesn’t work. Here are the facts.
The Manhattan Institute
Urban Policy & Housing Issue Brief: Rent Control Does Not Make Housing More Affordable
American Economic Review – Stanford University, UC Berkely, and University of North Carolina
Investors are slow to build in rent-controlled cities which decreases housing supply. Here are the facts.
TwinCities.Com – Pioneer Press
With St. Paul Rent Cap Approved, Developer Hitting Brakes on Some Projects
Star Tribune
St. Paul Rent Control Vote Turns Builders and Bankers Away From Capital City
TwinCities.Com – Pioneer Press
As Rent Control Looms, Small St. Paul Landlords Sell Low-Cost Units, Hike Rents
Local Housing Market in Turmoil After St. Paul Rent Control Vote
If few communities make changes, revenue losses would be minor. If many communities pass strong rent control, revenue losses could be in the hundreds of millions of dollars per year.
NMHC Research:
Nearly six in 10 (58%) of surveyed multifamily firms indicate they are reducing or avoiding investment in rent controlled markets, and another 15% of firms are considering cutting back in those markets. Conversely, only a quarter (27%) of firms are willing to keep their current or add new investments in rent controlled markets.
Fully 87.5% avoid working in jurisdictions with rent control.
https://www.nmhc.org/research-insight/research-report/nmhc-nahb-cost-of-regulations-report/
Among the conclusions Dr. Sturtevant’s review found are that:
- Rent control and rent stabilization laws lead to a reduction in the available supply of rental housing in a community;
- Rent control policies generally lead to higher rents in the uncontrolled market;
- Rent control and rent stabilization policies do a poor job at targeting benefits;
- Rent control can cause renters to continue to live in units that are too small, too large or not in the right locations to best meet their housing needs;
- There are significant fiscal costs associated with implementing a rent control program;
- Rent-controlled buildings can potentially suffer from deterioration or lack of investment; and,
- Rent control policies can hold rents of controlled units at lower levels but not under all circumstances.