Tried Elsewhere, Failed Elsewhere

The shortage of affordable housing has increased interest in rent control, but evidence shows these policies often reduce supply and worsen affordability for renters and homeowners alike. Mayors, governors, policymakers, and even affordable housing advocates, have fought rent control measures due to their adverse implications. With proposals for rent caps looming in Providence, as well as statewide, Cortney Nicolato, CEO of the United Way of Rhode Island and and Michelle Wilcox, CEO of Crossroads Rhode Island said it best in a joint opinion editorial in the Providence Journal: 

"The proposed Providence rent stabilization ordinance is motivated by a real and understandable concern. But research from cities across the country shows that rent control and stabilization policies often produce unintended consequences. By capping revenue growth and adding new regulatory layers, these policies can discourage new development and reduce investment in rental housing. In tight housing markets, this can worsen the shortage." 

Here are just a few of the documented examples of the unintended consequences of rent control measures:

• Rent control deters housing development. 
  • St. Paul, Minnesota saw multifamily permits plummet 86.2% in a single quarter following its 2021 ordinance.
  • Revenue caps encourage ownership conversions, diminishing rental supply.
    • San Francisco's rent-controlled housing supply fell 15% as landlords avoided regulation through conversions to condos.
• Rent control reduces property values
  • Since 2022, 3-4 unit buildings (largely under rent control) have seen values flatten or decline in Portland, Maine.
• Revenue caps disincentivize maintenance.
  • In New York City, 64% of controlled units were found to have maintenance deficiencies.
• Revenue caps encourage ownership conversions, diminishing rental supply.
  • San Francisco's rent-controlled housing supply fell 15% as landlords avoided regulation through conversions to condos.
• Rent control devalues the tax base and triggers a potential shift ot homeowners or municipal loss of services.
  • Portland, Maine saw up to a 5.4% reduction in the city's tax base when rent control was implemented.
  • As rental property values plummet, cities must either raise property tax rates or cut essential local services to offset the revenue gap.

Whether referred to as rent control, rent stabilization, or rent caps,  the result is the same - an intensified housing shortage. Reach out to your state officials and ask them to reject rent control in the Ocean State.