Amid a steep run-up in rental costs over the past several years, a growing number of Americans are advocating for more comprehensive rent regulations to improve affordability, but housing experts say they may actually have the opposite effect.
The rental market also faces a widening supply shortage that is contributing to higher prices, and because rent control could force housing providers to absorb essential maintenance costs and reduce investments in improvements, many would ultimately consider selling their assets. That could lead to an even sharper drop in inventory and, ultimately, a greater uptick in housing costs, Forbes reports.
“NAA’s latest research aligns with decades of data and real-life case studies that all lead to the same conclusion: rent control is a failed policy that brings more harm than relief to local communities,” said Bob Pinnegar, NAA president and CEO. “It’s not surprising that policies that make it harder for housing providers to do their jobs lead to less housing options. It is past time for our elected officials at all levels of government to shift their focus to policies that address housing supply issues and are targeted to the households most in need of support.”
Market Data + Trends
A Tale of Two Extremes: NYC For-Sale Market Stalls While Rental Market Booms
As housing costs reach new highs, New York City buyers are flooding an already supercharged rental market
Buying a Home Is Cheaper Than Renting One in Just Four Major Cities
Only four U.S. metros offer homes with monthly mortgage payments beneath regional rental costs
How Single-Occupant Households Are Exacerbating a Rental Affordability Crisis
The total share of renter households is declining in some major cities where affordability challenges persist, but as single renters go toe-to-toe for available units, elevated demand is sustaining high prices