New Report: The Impact of Rent Control Across America

A new analysis shows recently enacted rent control polices in cities across America hurt housing supply.

The new NAA reports 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.

Rent control reduces 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.

Rent control deters maintenance and improvements, pushing owners to sell: 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.

Rent control policies subsidize high-income residents:  Nearly 60% of rental housing providers know of higher-income residents who benefit from these policies. Additionally, almost half of poll respondents incorrectly believe rent control only provides affordable housing to low- and moderate-income households.

The report concluded that while the notion of rent control policies may appear as an appealing solution to housing affordability, it is critical to acknowledge their potentially counterproductive and damaging consequences. Rent control has been proven to negatively impact renters, housing providers and even entire communities. This research shows that rent control policies can inadvertently lead to reduced housing supply, lower property values and decreased quality of available properties. Additionally, rent control disincentivizes new construction, which could exacerbate the housing affordability crisis

Click here to read the report.

Boston Unveils Online Processes for Smoke/CO Detector Inspections

The Boston Fire Department has announced a new online application process for smoke and carbon monoxides detector inspections. Introduced in mid-February by the BFD’s Fire Prevention Division, the online application process now requires payments be made prior to an inspection being scheduled. Email notices will be issued once an application has been processed to alert applicants that payments may be accepted, as well as once the inspection has been scheduled to notify applicants of the inspection date. As in the past, inspections will be scheduled on a first-come, first-serve basis. For questions or concerns, contact the Boston Fire Dept. at [email protected] or call 617-343-3628.

GBREB Public Statement:  Proposed Boston Gas Ban

On August 16, 2022, Greg Vasil, CEO of the Greater Boston Real Estate Board, issued the following statement in response to Mayor Wu's move to seek to ban fossil fuels in the construction of new buildings in Boston: 

“While we share and admire Mayor Wu’s dedication to combatting climate change, we are deeply concerned by fully banning fossil fuels from new construction and the negative impacts such a blunt change will have on the critical need for housing production. Construction costs are already too high due to inflation and national supply chain challenges. Banning fossil fuels in new developments will only increase costs further. This ban would be especially problematic in a city like Boston, which produces huge levels of housing and is an economic engine for all development. Housing production is key to overcoming our state’s housing crisis. Instead of taking part in the state’s pilot program to ban fossil fuels in new developments, we believe the city and state should await the results of the pilot program before considering if and how Boston may implement this ban.”

2022 GBREB Foundation Scholarship Event:   June 7, 2022

The Fund was established in 2012 with the goal of assisting economically disadvantaged young people attend and graduate from college by providing them with financial aid counseling and economic assistance.  To achieve this goal the GBREB Foundation has with Bottom Line, a Boston based organization that helps students from low-income families find an affordable path to a postsecondary education, and then through college with mentorship and life skills to prepare them for the workforce.   

The GBREB Foundation has awarded over 400 , two-year scholarships, since its inception which range in amount from $ 1,000 to $5,000, and are designed to supplement and not affect the financial aide package that the student receives from the institution they wish to attend.  These “last dollar in scholarships,” can often be the determining factor in deciding whether or not to attend college.

The GBREB Foundation Event traditionally recognizes leaders in Massachusetts real estate, business, and government for their service to the community, especially those who are particularly philanthropic, or trendsetters and trailblazers in giving back to Greater Boston.  
 
2022 Scholarship Application:
We encourage eligible students to APPLY HERE by the April 1st deadline.  Questions on how to apply?  Contact Ryan Burton at Bottom Line [email protected]