Key Findings: How Rent Control Harms Investment, Supply, and Affordability

1. Reduces Investment and Development:

○      Over 70% of housing providers report that rent control negatively impacts their investment and development plans.

○      Actions include reducing investments, shifting to markets with fewer regulations, and canceling planned projects altogether.

2. Restricts Maintenance and Deteriorates Quality:

○      Rising operating costs, including insurance, utilities, and taxes, force providers to defer nonessential maintenance and reduce property improvements.

○      61% of housing providers have deferred maintenance or expect to do so due to rent control, compromising the quality and safety of housing stock.

3. Disincentivizes Market Participation:

○      Over 54% of housing providers indicate they would consider selling their assets in rent-controlled markets, reducing long-term rental supply.

○      Small-scale landlords are disproportionately affected, as they lack resources to manage rising costs and regulatory complexity.

4. Subsidizes Higher-Income Residents:

○      58% of housing providers report higher-income residents benefiting from rent control policies, reducing availability for low- and moderate-income households.

5. Stalls Local Economic Growth:

○      Rent control discourages development and limits tax revenue for public services, such as schools, parks, and infrastructure.

○      Policies that deter housing investment reduce economic vitality and weaken local job markets.

Conclusion:

This study demonstrates that rent control policies create a ripple effect of reduced housing investment, diminished quality, and worsened affordability. By driving away housing providers and discouraging development, rent control exacerbates housing crises rather than solving them.