New Report: Rent Control Would Cut Housing Supply, Lower Values & Tax Revenue in Boston, Across Massachusetts
A new analysis shows rent control proposals would drastically reduce the supply of apartments, property values and tax revenue in Boston and throughout Massachusetts if the Legislature rescinds the voter-approved ban on the policy.
The new NAA reports analyze the impact if a 3% annual cap on apartment rents is implemented in Boston or across the state, as proposed in current legislation. Among the key findings:
● New apartment supply will drop by more than 700 units per year;
● Apartment property values will drop by more than $260 million; and
● Property tax revenue to the City of Boston will drop by more than $2 million annually.
Across Massachusetts, the negative outcomes increase exponentially:
● Impacts 40%, or more than 18,000 units of foregone new housing stock and existing units potentially lost due to infeasible repairs and upgrades of existing stock;
● Apartment property values drop by more than $820 million; and
● Property tax revenue to cities and towns will drop by more than $7 million annually.
The reports further notes that, in Boston, apartments and their residents contribute more than $54 billion to the regional economy annually, and support more than 228,000 jobs. Throughout the state, apartments and their residents contribute more than $60 billion to the Massachusetts economy each year, and support more than 268,000 jobs. But if a 3% annual cap on apartment rents is implemented, both the economic strength and massive workforce created by the apartment industry would come under serious threat.
IMPACTS OF RENT CONTROL: MASSACHUSETTS
IMPACTS OF RENT CONTROL: BOSTON