The Federal Housing Finance Agency (FHFA) is considering a novel legal strategy to enact rent control nationwide. But Don Brunner, President and CEO of BRG Realty Group, explains why such a plan is destined to fail.
States: All State Resource
New research out of New York University’s Furman Center revealed that the rules of supply and demand apply to housing affordability. Researchers found that new housing production can slow rent growth in cities and free up more affordable vacant units in surrounding neighborhoods. – Bloomberg CityLab
In recent years, many states have enacted reforms to boost housing construction as a way to combat the housing crisis.
In an opinion piece, California-based housing developer Rick Snyder stresses that a proposal to impose rent control on loans backed by Freddie Mac and Fannie Mae would only worsen housing affordability. “Federal rent control would have a destabilizing impact on America’s housing market and capital markets more broadly. You don’t need to be a housing … Continued
Housing affordability is a problem shared by nearly every state in America, and some governors are looking to address it with innovative policymaking.
Rent control laws are contributing to a shortage of affordable housing, according to economists.
In the last two years, the housing supply has surged in many parts of the country, with more apartments under construction in each of the last two years than in any year since the federal government began keeping track. The result is that rents are flattening and even declining in some cities.
Three governors in states facing serious housing affordability challenges began the year announcing plans to address the housing shortages in their states.
Misguided policies like rent control are shown time and time again to dissuade investment while failing to meaningfully help those in the most need. Since passing a rent control ballot initiative in November 2021, St. Paul has experienced first-hand the widespread challenges resulting from rent control. Residents are recognizing that although rent control may be well-intentioned, whenever and wherever enacted, these policies fail in delivering effective housing solutions.