BOSTON— A new report by the National Apartment Association (NAA) warns that proposed rent control legislation could significantly reduce housing supply, property values, and local tax revenue if Massachusetts lawmakers repeal the voter-approved ban on the policy.
The analysis focuses on the impact of a 3% annual cap on apartment rents, as proposed in current legislation. Key findings for Boston include:
-
A reduction of more than 700 new apartments per year;
-
A drop in apartment property values exceeding $260 million;
-
An annual loss of more than $2 million in property tax revenue for the City of Boston.
The report also highlights statewide consequences, which would be even more severe:
-
A 40% reduction in potential new housing stock, with more than 18,000 units affected, including existing units that could be lost due to infeasible repairs or upgrades;
-
Apartment property values falling by over $820 million;
-
Annual property tax revenue losses of more than $7 million for Massachusetts cities and towns.
In addition to financial and housing impacts, the NAA report emphasizes the broader economic role of apartments in the state. In Boston, apartment buildings and their residents contribute more than $54 billion to the regional economy and support over 228,000 jobs annually. Across Massachusetts, apartments contribute over $60 billion to the economy and support more than 268,000 jobs.
The report warns that implementing a 3% rent cap would not only strain housing availability but also threaten the economic contributions and workforce supported by the apartment sector.
This analysis adds to the ongoing debate over rent control in Massachusetts, where policymakers are weighing the potential benefits of capping rent increases against the potential economic and housing market consequences highlighted in the NAA study.
