Research Finds Rent Control and other Rent Regulation Laws Hurt Renters Seeking Housing Opportunity and Affordability, and Disproportionally Benefits Higher Income Renters
In 2018, Dr. Lisa Sturtevant completed a literature review for the National Multifamily Housing Council (NMHC) on rent control and its associative effects.
Dr. Arthur C. Nelson, Professor Emeritus at the University of Arizona, reaffirms – and builds upon – these findings as part of a 2024 report that explores more recent impacts of rent control and rent regulation policies in the U.S.
The 2024 report incorporates new, peer-reviewed and academic articles that illustrate various rent regulation programs that reduce the supply of housing in communities across the nation—therefore increasing housing costs.
Download the Report: Rent Regulation Policy in the United States >>>
What This Research Covers
As part of the report, Dr. Nelson reaffirms several key impacts of rent control policies identified within the 2018 research including:
- Reducing the available supply of rental housing in a community;
- Raising rents in uncontrolled communities within the same larger market area;
- Forcing residents into units that do not best meet their needs, perhaps depriving other residents of units they need;
- Increased fiscal costs associated with rent control programs; and
- Deterioration or lack of investment in rent-controlled buildings.
Along with reinforcing these impacts, the 2024 report also identifies new impacts of rent control in its various forms including:
- Disincentivizing investment in the rental community, resulting in fewer rental units;
- Inhibiting mobility, thus creating a barrier to entry for new renters seeking housing in rent-controlled communities;
- Distributing the limited benefits of rent regulation disproportionally to higher-income, older and white residents, respectively;
- Substantially reducing the value of rent-regulated properties as well as nearby unregulated rental properties, thereby reducing real estate tax revenue to the locality; and
- Failing to address, if not negatively impacting, eviction prevention, renter well-being, renter educational attainment opportunities and neighborhood quality.
Key Findings
Insights from this literature review further reinforce years of prior research from both the United States and in cross-country comparison demonstrating that rent control and rent regulation policies fail to meet their purported objective of creating a more affordable rental housing market, especially for those of more modest means. Instead, the research begs for more effective, alternative ways in which to service households most in need of affordable rental housing, including expanding supply to meet market needs.
Original Finding: Rent regulation reduces the available supply of rental housing in a community.
Recent Insight: Rent regulation disincentivizes investment in the rental community, resulting in fewer rental units.
Original Finding: Rent regulation forces residents into units that do not best meet their needs, perhaps depriving other residents of units they need.
Recent Insight: Rent regulation inhibits mobility, creating a barrier to entry for new renters seeking housing in rent-controlled communities.
Original Finding: Rent regulation forces residents into units that do not best meet their needs, perhaps depriving other residents of units they need.
Recent Insight: The limited benefits of rent regulation accrue disproportionally to higher-income, older and white residents, respectively.
Original Finding: There are fiscal costs associated with rent control programs.
Recent Insight: Rent regulations substantially reduce the value of rent-regulated properties as well as nearby unregulated rental properties, thereby reducing real estate tax revenue to the locality.
Original Finding: Rent regulation causes deterioration or lack of investment in rent-controlled buildings.
Recent Insight: Rent regulation does not reduce evictions or further well-being, educational attainment or neighborhood quality.
Full Report
Download the full Rent Regulation Policy in the United States Report.
Key Findings
Download a flyer that summarizes the key findings of the 2024 Rent Control Literature Review.
