💬 Discussion

Are rent-control measures a good idea?

Wednesday, Feb 18

Image: Frederic J. Brown

A fight is brewing in Massachusetts over a proposal to establish one of the nation’s strictest rent-control measures.

Last week, Boston Mayor Michelle Wu became the latest local leader to weigh in, declaring her support for the proposed ballot measure that would establish a cap on rent hikes across the state.

If approved by voters in November, the proposed ballot measure would limit the amount by which landlords can increase rent for tenants each year, tying the annual percentage to either the US Consumer Price Index or 5% (whichever is lower).

  • Newly constructed buildings would be exempt for their first 10 years, in an effort to avoid discouraging new development.
  • Owner-occupied buildings with four or fewer units would also receive an exception to the new measure.

More context: If adopted, the Massachusetts law would mark one of the strictest such measures in the US. Other areas with rent-control laws, including California, Oregon, and Maryland’s largest county, allow landlords to raise rents by an additional margin above inflation.

It comes as rents for the average two-bedroom apartment in Massachusetts are ~72% above the national average, according to Zillow data ($2,530 vs. $1,473).

The arguments

Massachusetts’ rent-control proposal has received divided reviews from economists, housing advocates, and lawmakers, relaunching a familiar debate over affordability vs. supply when it comes to housing.

Supporters of the move say rent caps provide predictability in a state where housing costs rank among the highest in the country, and avoid instances where sudden rent spikes displace tenants in larger cities like Boston and Cambridge.

Other proponents, including city leaders in LA and NYC, say rent-control measures represent an effective tool to slow the rate at which housing becomes less affordable for working- and middle-class residents.

On the flip side: Opponents argue that strict rent caps can make new housing projects harder to justify financially, particularly in already expensive markets. Over time, limiting rent growth could slow construction and tighten the housing market even further.

Critics also point to Minnesota’s Twin Cities as a real-world test-case:

  • After St. Paul adopted one of the country’s toughest rent-control laws in 2022, permits for new apartment buildings fell, causing the policy to be rescinded in 2025.
  • Nearby Minneapolis, which didn’t implement rent control, saw building activity rise during the same period.

Looking ahead…If Massachusetts lawmakers decline to pass the rent-control measure by midyear, it’s widely expected to secure a spot on November’s ballot by reaching 100,000 signatures.

📊 Flash poll: Do you support or oppose the new proposed rent-control measure in Massachusetts?

See a 360° view of what pundits are saying →

Democratic donkey symbol

Sprinkles from the Left

  • Some commentators argue that artificially capping rent is a proven economic failure that results in housing shortages, since landlords are more likely to stop renting to tenants, delay maintenance, and forgo construction of new housing.
  • Others contend that politicians can protect the public’s health, help prevent homelessness, and save lives by passing rent regulations that prevent outrageous price increases leading to mass evictions.
Republican elephant symbol

Sprinkles from the Right

  • Some commentators argue that policies to freeze or strictly limit rent increases will make the problem of affordability much worse by placing more pressure on landlords, and will also reduce the quality of housing stock since more repairs will get delayed due to lack of funds.
  • Others contend that rent control is a misguided and incorrect way to address the issue of unaffordable housing, and the real answer is to increase housing supply by reforming zoning laws and making construction rules less costly.
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