Rent control has long been a controversial topic and a source of unequal attention among housing providers, lenders, and renters. In response to this, a coalition of high-profile housing providers, resident and lenders’ associations have taken a stand, warning that rent control could be detrimental to all stakeholders.
In their statement, the coalition cautioned that rent control could increase rents, given the restricted ability to increase prices when the underlying cost increases. The coalition also highlighted that measure would reduce capital to boost housing supply as investors will look for more attractive prospects. Finally, the coalition called for alternative solutions that would protect renters better.
Overall, the coalition’s statement highlighted the complexity of the rent control issue and highlighted potential drawbacks to all stakeholders. Below are the main points of the statement:
• Increased rents due to restricted ability to increase prices when underlying cost increases
• Reduced capital for housing supply due to investors having more attractive prospects to pursue
• Warnings that alternative solutions should be sought to better protect renters
You can read this full article at: https://www.housingwire.com/articles/trade-groups-oppose-rent-control-on-gse-backed-multifamily-properties/(subscription required)
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