APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION
Examining the Unintended Consequences of Rent Control Policies in Cities Across America
EFrom December 2022 to February 2023 , the National Apartment Association ( NAA ) commissioned ndp | analytics to conduct interviews with housing providers and developers from three different markets impacted by rent control policies and proposals : St . Paul , Minn ; Santa Ana / Santa Barbara ; Calif ; and Portland / Eugene , Ore . The interviewees ranged from large firms operating thousands of units and having properties across the country to small 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 .
The housing provider research was supplemented with an online public opinion poll across the United States in February 2023 . The poll questions focused on housing availability , residential construction and policy perspectives . Below are the key findings from the interviews and public opinion poll .
1Rent Control Policies Reduce Investment And Development .
Over 70 % of housing providers say rent control impacts their investment and development plans ; actions include reducing investments , shifting plans to other markets , and canceling plans altogether .
Housing
2 Providers Absorb The Cost Of Essential Maintenance And Reduce Investments In Improvements And Nonessential Work Due To Rent Control .
With rent control in effect , housing providers are faced with the difficult financial strain of absorbing essential maintenance costs and are forced to reduce investments in improvements and nonessential maintenance . As a result , 54 % said they expect to or would consider selling some assets .
Americans are
3 looking for more housing options .
Half of the poll respondents said there are not enough options for buyers and renters looking for homes ; 35 % want more residential development . However , rent control drives away investments and reduces potential tax revenue contributed by rental housing providers .
Rent Control Policies Are Often
4 Misunderstood As Helping Only Lower-Income Households , But These Policies Also Subsidize Higher-Income Residents .
Nearly 60 % of rental housing providers know of higher-income
44 | TRENDS APRIL 2023 www . aamdhq . org