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Investors are slow to build in rent-controlled cities which decreases housing supply. Here are the facts.
St. Paul City Council votes 4-3 to roll back rent control ordinance
FOX 9 | May 7, 2025
Housing construction in Minneapolis and St. Paul is tanking as new year begins
MinnPost | OpEd | January 27, 2025
Academic research and experience show that rent control doesn’t work. Here are the facts.
Issues 2020: Rent Control Does Not Make Housing More Affordable
The Manhattan Institute | January 8, 2020
The Manhattan Institute | January 8, 2020
The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco
American Economic Review – Stanford University, UC Berkely, and University of North Carolina | September 2019
NMHC Research:
According to NMHC research released in 2024:
- The imposition of rent regulations accelerates the loss of rental units from the housing stock.
- Rent regulation inhibits mobility, thus creating a barrier to entry for new renters seeking housing in rent-controlled communities while inhibiting potential opportunities for existing renters.
The Effect of Rent Control on New Housing Supply: A Bay Area Case Study (2020)
- Rent control introduces uncertainty for investors and developers, affecting return on investment calculations.
- The absence of or limited exemptions for new constructions under rent control policies can lead to a decrease in the development of new housing units.
- The report suggests that stringent rent control measures could impede the overall growth of housing supply in affected areas.
The Takoma Park Rent Control Analysis (2005)
- Rent stabilization in Takoma Park has led to rents being significantly below market levels, which may discourage new housing development due to lower potential returns on investment.
- The decline in the number of rental units by 14% since 1990 suggests that rent control policies might be contributing to a decrease in housing supply.
- The report indicates that Takoma Park’s rent control is more restrictive than most, potentially creating a substantial disincentive for new housing production or reinvestment in existing housing.