The Case Against Rent Control/Stabilization
The Core Issue: Not Enough Housing
Rhode Island’s housing crisis stems from a lack of supply driven by high construction costs and regulatory barriers.
While rent control and stabilization may seem helpful, they actually reduce private investment, limit new housing construction, and worsen affordability—especially for low-income and minority renters.
How Rent Control and Rent Stabilization Hurts Housing
Rent Control Reduces New Construction
- 70% of investors avoid rent-controlled markets (National Apartment Association)
- San Francisco lost 10–15% of its rental housing stock after rent control
- St. Paul, MN experienced an 80% drop in multifamily building permits after adopting rent control
- Permit activity increased after rent controls were loosened: Berkeley (+13.4%), Oakland (+9.7%), San Jose (+19.1%), San Francisco (+19.6%)
Rent Control Cuts Maintenance & Repairs
- Rent caps limit revenue, leading to deferred maintenance and deterioration of existing housing
- Over 60% of landlords report delaying non-essential repairs under rent control (NAA)
- Low-income tenants are most impacted by poor housing conditions
Rent Control Limits Financing & Payroll
- Banks view rent-controlled areas as high-risk, resulting in higher interest rates, lower loan-to-value ratios, and stricter loan terms
- Makes housing development and property management financially unsustainable
- Makes affordable housing less accessible to buyers of multi-families
Rent Control Reduces Tenant Mobility
- Tenants stay in below-market units even if they no longer suit their needs
- New families, workers, and renters—especially minorities and immigrants—are locked out of affordable housing options
- Restricts the housing market’s ability to respond to demand
Rent Control Shrinks the Local Tax Base
- Rent control reduces assessed property values, lowering tax revenue
- Less funding is available for schools, infrastructure, and city services
- Shifts the tax burden to single family homeowners, including working-class families
Expert Consensus
“While rent control appears to help current tenants in the short run, in the long run it decreases affordability, fuels gentrification, and creates negative spillovers.” —Brookings Institution, 2018
“Rent control led to a housing stock that caters more to high-income residents.” —Stanford Study on San Francisco, 2019
Better Alternatives
Better alternatives to rent control already exist and work:
- Direct rental subsidies or vouchers for low-income tenants
- Zoning reform to allow more multi-family and accessory dwelling units
- Tax credits and subsidies for affordable housing development
- Public-private partnerships for mixed-income housing
The Bottom Line
Rent control may offer short-term relief to some, but it deepens the long-term housing crisis.
Providence and the rest of our state need real solutions: Expand the housing supply, reduce regulatory barriers, and support renters directly through targeted, sustainable policies.
Join us in supporting better alternatives to rent control/stabilization, so we can make real progress solving the core issue of not having enough housing in our state.