Episode 2: Rent Control's Hidden Costs: Unveiling the Domino Effect on Housing Quality

"Rent control has been proven over and over again to be a failed policy."
This powerful statement from Leah Cuffy, representing the National Apartment Association, sets the tone for this critical episode of The Multifamily Review. Joining Marcus Armstrong, Leah dissects a new NAA-sponsored study that sheds light on the often-overlooked relationship between rent control and housing quality.
While many view rent control as a shield for vulnerable renters, this research reveals a different story. The study, conducted by Dr. Andrew Hanson from the University of Illinois Chicago, used data from the US Census Housing American Survey, specifically focusing on the 15 largest metropolitan areas. The findings expose a disconcerting connection between increasing rent control and declining housing quality, particularly concerning interior deficiencies.
Leah explains that under rent control policies, housing providers often face financial pressures that lead to deferred maintenance. The study highlights a significant 26% increase in housing providers opting to defer maintenance in 2021. This deferral not only jeopardizes resident quality of life but also contributes to the depreciation of property values, discouraging new investments and development.
The ripple effect extends beyond individual properties, impacting the broader community. The study found correlations between rent control and both increased crime reports and residents' dissatisfaction with school quality and neighborhood cleanliness. Leah stresses that rent control fails to address the root cause of housing affordability: the imbalance between supply and demand. By restricting new development, rent control can exacerbate housing shortages, ultimately making it even more difficult for low-income renters to find decent, affordable housing.
The YIMBY (Yes In My Backyard) Act is presented as a potential solution, as it seeks to remove barriers to housing development. By promoting more inclusive and diverse housing options, it encourages new construction and strengthens the housing market, making it more accessible to renters across all income levels.