While rent control appears to help housing providers in the short run, in the long run it affects their investment and development plans, according to new research by the National Apartment Association (NAA). Potential actions include reducing investments, shifting plans to other markets and canceling plans altogether. Furthermore, a full two-thirds of housing providers would not consider investing in markets with strict rent control policies.
NAA’s analysis highlights the unintended and detrimental consequences of rent control. From December 2022 to February 2023, NAA commissioned ndp | analytics to conduct interviews with housing providers and developers from three markets affected by rent control policies and proposals: St. Paul, Minnesota; Santa Ana/Santa Barbara; California; and Portland/Eugene, Oregon. The respondents ranged from large firms operating thousands of units and having properties across the country to mom-and-pop businesses with a handful of units and, often, invested in real estate as part of a retirement plan or second source of income.
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