cawacko
Well-known member
Economists across the political spectrum agree that rent control and rent caps help to increase prices and reduce supply. So why do we keep seeing more of it?
The answer to bring down housing costs is to increase supply. However, many rich people don't want new housing around them. Many poorer people don't want it either, claiming it will cause gentrification unless it's 100% affordable housing. 100% affordable housing is very expensive to build and not scalable.
Therefore politicians turn to rent control. It sounds great on the surface and it does benefit people who get it, so they have a built in constituency and the overall negative effects are ignored.
In Massachusetts, advocates have secured enough signatures to move forward with a ballot initiative that would impose one of the strictest rent-control regimes in the country, limiting annual rent increases to either 5 percent or the rise in the Consumer Price Index, whichever is lower. This marks a dramatic political turn, given that statewide rent control was banned in 1994. The drive is being backed not just by tenant groups but powerful labor unions, including teachers and service workers, who see rising rents as a major economic burden.
This isn’t an isolated moment. In Los Angeles, the city council recently approved its strongest rent-stabilization overhaul in four decades, capping rent increases for stabilized units at a maximum of 4 percent per year, down from 8 percent or more under the old rules. City leaders framed it as a necessary correction to runaway rent hikes and rising displacement. Meanwhile, in New York City, housing costs were a defining issue in the mayoral race, with the winning candidate building momentum around promises to “freeze the rent” — making regulation not just an economic tool, but a campaign centerpiece.
Taken together, these movements suggest rent control is no longer just a housing policy — it’s becoming a political lever. Activists are leveraging ballot initiatives and city council votes, while unions and progressive politicians make it central to their platforms. The Massachusetts initiative, if passed, would cast a wide net across the state, far beyond dense urban cores, illustrating how deeply cost-of-living politics now penetrate.
But there’s real tension under the surface. Opponents argue strict rent control could stifle new housing construction and heighten maintenance burdens for landlords. Some local leaders, including Boston’s mayor, have expressed curiosity but also concern that a one-size-fits-all cap could hurt market dynamics in certain municipalities. These critiques highlight what many fear: that political rent control may fix affordability in the short term, but could choke off supply over time.
This political resurgence must be taken seriously. Rent control is no longer a niche policy left to academic debates, it’s now a front-line battleground. Whether ballot measures or city ordinances, the new wave of regulation reflects broader social and political pressures, and could reshape investor expectations, development strategies, and even municipal budgeting in the years ahead.
propmodo.com
The answer to bring down housing costs is to increase supply. However, many rich people don't want new housing around them. Many poorer people don't want it either, claiming it will cause gentrification unless it's 100% affordable housing. 100% affordable housing is very expensive to build and not scalable.
Therefore politicians turn to rent control. It sounds great on the surface and it does benefit people who get it, so they have a built in constituency and the overall negative effects are ignored.
Rent Caps Are Shifting From Policy to Political Platform
Housing stability is becoming an economic strategy
In Massachusetts, advocates have secured enough signatures to move forward with a ballot initiative that would impose one of the strictest rent-control regimes in the country, limiting annual rent increases to either 5 percent or the rise in the Consumer Price Index, whichever is lower. This marks a dramatic political turn, given that statewide rent control was banned in 1994. The drive is being backed not just by tenant groups but powerful labor unions, including teachers and service workers, who see rising rents as a major economic burden.
This isn’t an isolated moment. In Los Angeles, the city council recently approved its strongest rent-stabilization overhaul in four decades, capping rent increases for stabilized units at a maximum of 4 percent per year, down from 8 percent or more under the old rules. City leaders framed it as a necessary correction to runaway rent hikes and rising displacement. Meanwhile, in New York City, housing costs were a defining issue in the mayoral race, with the winning candidate building momentum around promises to “freeze the rent” — making regulation not just an economic tool, but a campaign centerpiece.
Taken together, these movements suggest rent control is no longer just a housing policy — it’s becoming a political lever. Activists are leveraging ballot initiatives and city council votes, while unions and progressive politicians make it central to their platforms. The Massachusetts initiative, if passed, would cast a wide net across the state, far beyond dense urban cores, illustrating how deeply cost-of-living politics now penetrate.
But there’s real tension under the surface. Opponents argue strict rent control could stifle new housing construction and heighten maintenance burdens for landlords. Some local leaders, including Boston’s mayor, have expressed curiosity but also concern that a one-size-fits-all cap could hurt market dynamics in certain municipalities. These critiques highlight what many fear: that political rent control may fix affordability in the short term, but could choke off supply over time.
This political resurgence must be taken seriously. Rent control is no longer a niche policy left to academic debates, it’s now a front-line battleground. Whether ballot measures or city ordinances, the new wave of regulation reflects broader social and political pressures, and could reshape investor expectations, development strategies, and even municipal budgeting in the years ahead.
Rent Caps Are Shifting From Policy to Political Platform
As Massachusetts pushes a dramatic statewide rent-control ballot initiative, the battle shows how rent regulation is transforming into a core political tool, echoing similar fights in L.A. and New York City.
propmodo.com
thinks it is a viable solution. People paying on property into their 80's isn't what I'd call "good times." But times are changing and we'll have to see where the sands shift.