Overview:
Proponents of rent control in Massachusetts argue that it will provide stability for residents and protect communities from displacement, while allowing landlords to operate and profit. However, opponents say that the measure would shift costs onto small property owners and reduce housing production. Governor Maura Healey is staunchly opposed to the initiative petition, saying that investors are afraid and it is counteractive to what the state is trying to do.
While they agree boosting the housing supply is important, proponents say residents facing steep rent hikes can’t afford to wait years for new homes to be built.
“This is a fair policy that will create stability for residents, protect communities from displacement, and ensure that Massachusetts remains a place where working families can afford to live, while allowing landlords to operate and profit and preventing the worst corporate actors in the housing market,” said Carolyn Chou, executive director of Homes For All Massachusetts, the campaign backing the proposed ballot question.
Sen. Barry Finegold said Denver and Raleigh, N.C., have seen a drop in rents and asked supporters: “Shouldn’t those be the models that we follow to have rents actually fall and make it more affordable for people?”
Tram Hoang, a senior associate at PolicyLink, said it’s important to look at rental price changes by sub-market because rents are dropping for high-income earners, as opposed to lower-income residents, because vacancy rates for higher-end rental units are rising. Also, it’s rare for someone’s rent to drop and it’s more likely a resident may move to a different unit with a cheaper rent, she said.
“Building at the top is very great because it adds housing supply. But if we want immediate benefits to those who are in most dire conditions, then building at all levels in every sub-market is critical,” Hoang said.
Along with concerns about diminishing housing supply, opponents said the measure would shift costs onto small property owners.
Tony Lopes, a small property owner and vice president of the Small Property Owners Association, said more than 60% of housing providers in the state are small property owners, many of whom own two- or three-family homes and have another full-time job.
“We are not corporations. We are your neighbors,” Lopes told lawmakers while testifying against the measure.
Feeney asked opponents “what is the answer then” to the state’s housing crisis if it’s not rent control. The panel of opponents said building more units is crucial as well as reducing red tape and making it easier to rezone properties.
Finegold also asked opponents what they believe would happen to housing production in communities that border other states if Massachusetts passed the measure.
“It’s already happening, senator, with the rumors of rent control, [developers] are already crossing over to New Hampshire,” responded Neily Soto, chair of Methuen City Council and board member of Massachusetts Housing Coalition.
Soto’s testimony aligns with observations from the Federal Reserve Banks’s Beige Book and top Beacon Hill leaders.
During an event held by the Greater Boston Chamber of Commerce last week, Gov. Maura Healey – who is staunchly opposed to the initiative petition – said that when the idea of rent control going on the ballot came out she got calls from six developers who had lost investment funds.
“Investors are afraid,” the governor said. “It’s totally at odds and counteractive to what we’re trying to do.”