Rent control could negatively affect these US cities
CALIFORNIA RENT CONTROL LAW MAY EXACERBATE HOUSING CRISIS, EXPERTS WARN‘ data-reactid=”16″>CALIFORNIA RENT CONTROL LAW MAY EXACERBATE HOUSING CRISIS, EXPERTS WARN
Proponents of the policy say it could protect tenants from eviction and decrease tenant turnover resulting from rapid rent increases.
Here’s a look at how four different cities would be impacted by a 7 percent rent control cap, according to the National Apartment Association:
In Chicago, a 7 percent rent control measure would put 3,840 units at risk of not being built by 2030, researchers estimate. The city needs to build more than 35,200 new apartments over the same timeframe.
Apartment rental income would decline by about $24.6 million per year, while properties would lose $487.8 million in value.
Losses in tax revenue were expected to be the steepest for Chicago out of any of the four cities examined – at about $6 million per year.
Illinois has recently begun considering whether to rescind a statewide rent control ban that has been in effect for more than two decades.
Out of the nearly 46,000 new apartment units Denver needs to build to keep up with demand over the next decade, researchers estimate that a 7 percent cap on rental prices would put about 9,340 apartment units at risk.
Property values would decline by an estimated $462 million as rental income fell by $23.3 million annually.
The city would take in $3.5 million less each year in property tax revenue, too.
Colorado lawmakers have also debated overturning a law to allow local governments to implement rent control.
In Portland, Oregon, where statewide rent control was signed into law, researchers predict the negative effect on the new apartment supply to be slightly less dramatic – a decline of 2,796 units through 2030. The city needs an estimated 36,000 to keep up with demand.
Property values will decline by $213.9 million as a result of decreased income – rental income is expected to fall by $10.8 million each year.
Property tax revenues will decline by more than $5 million annually.
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Oregon passed the first statewide rent control measure in February – limiting increases to 7 percent annually, plus inflation.
California Gov. Gavin Newsom signed a statewide rent control provision in October.
strengthened rent stabilization and rent control measures in June.’ data-reactid=”44″>Meanwhile, New York City strengthened rent stabilization and rent control measures in June.
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