Tag Archives: Housing

The Hidden Dangers of Rent Control

Rent control is one of those ideas that sounds simple on the surface: cap rent increases so tenants can stay in their homes. Stability, predictability, affordability — all goals we can agree on. But when you look beyond the headlines and dig into how rent control actually plays out in real‑world housing markets, a very different picture emerges.

Communities across the country have learned the hard way that rent control often creates more problems than it solves. And as Providence considers its own rent‑control proposal, it’s important for homeowners, tenants, and policymakers to understand the unintended consequences that come with it.

Let’s break it down.

1. Rent Control Shrinks Housing Supply

Every credible study of long‑term rent control shows the same pattern: when strict caps are imposed, the number of available rental units goes down.

Why?

Because when landlords can’t keep up with rising costs — property taxes, insurance, utilities, maintenance — they eventually stop reinvesting in their properties or they sell them altogether. Some convert rentals into condos. Others leave the market entirely.

The result is fewer rental units, not more. And when supply shrinks, rents rise for everyone not protected by the cap — especially new renters and young families trying to enter the market.

2. It Discourages New Construction

Developers have choices. If one city imposes strict rent caps while neighboring communities do not, investment simply moves next door.

That means:

  • Fewer new apartments built
  • Fewer renovated units
  • Fewer modern, energy‑efficient homes
  • Less long‑term affordability

Cities like Cambridge, San Francisco, and St. Paul saw construction slow dramatically after adopting rent control. Providence risks the same outcome.

3. It Hurts the Small Landlords Who Provide Most Affordable Housing

Large corporate landlords can absorb losses. Small, local landlords — the ones who own two‑ or three‑family homes and keep neighborhoods stable — cannot.

When their expenses rise faster than the allowed rent increase, they face impossible choices:

  • Defer repairs
  • Sell the property
  • Convert units
  • Exit the rental market entirely

These are the very people who provide the majority of naturally affordable housing in Rhode Island. Policies that push them out ultimately hurt the tenants they serve.

4. Rent Control Creates Inequities

One of the least discussed problems with rent control is who actually benefits.

Long‑term tenants in controlled units often receive the biggest advantage — even if they have higher incomes. Meanwhile, new renters face:

  • Higher market rents
  • Fewer available units
  • Longer waitlists
  • More competition

This creates a two‑tiered system where some renters are protected and others are priced out.

5. Bureaucracy Grows — But Housing Doesn’t

Rent control requires oversight: boards, hearings, petitions, appeals, enforcement. Cities often underestimate the administrative burden.

A five‑member Rent Board reviewing thousands of petitions is a recipe for delays, inconsistency, and frustration for both tenants and landlords.

More bureaucracy doesn’t build more housing.

So What Does Work?

Communities that have successfully improved affordability focus on increasing supply, not restricting it. Proven strategies include:

  • Incentivizing new construction
  • Supporting small landlords
  • Streamlining permitting
  • Expanding housing vouchers
  • Encouraging renovation of older units

These approaches create long‑term stability without shrinking the housing market.

Final Thoughts

Rent control is often proposed with good intentions, but intentions don’t build homes. Supply does. Stability does. Policies that encourage investment, protect small landlords, and expand housing options do.

As Providence debates its next steps, it’s essential to look at the full picture — not just the promise of short‑term relief, but the long‑term impact on the people who live and work here.

If you have questions about how rent control could affect your property, your neighborhood, or your investment strategy, I’m always here to help you navigate the market with clarity and confidence.

— Joe Luca Your trusted REALTOR®, educator, and advocate for smart housing policy

50 Years Of Fair Housing

April 11 marks the 50th anniversary of the signing of the federal Fair Housing Act. Why is the commemoration a top priority for the National Association of REALTORS®?
The right to own property, and to own a home, is the foundation of our business.

NAR has taken an active role in promoting, and educating REALTORS® about, equal housing opportunity for 50 years.


The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability.
NAR incorporates all of those requirements, as well as equal opportunity on the basis of sexual orientation and gender identity, into our REALTORS® Code of Ethics, because it makes our association, our industry, and our country stronger.

FAIR Housing Commemoration

 

NAR’s commemoration of the Fair Housing Act is vital because it highlights how far we’ve come in promoting equal housing opportunity—both as a society and as an association—and, more importantly, that our work is on-going.
When Title VIII of the Civil Rights Act was passed in 1968, many in organized real estate had a far different view of fair housing. The new era of openness and equality in the sale or rental of housing clashed with hardwired beliefs at that time; and many believed that fair housing law posed a threat to individual property rights.

President Lyndon Johnson, as he signed the Fair Housing Act on April 11, 1968, famously declared that the right to fair housing “is now a part of the American way of life.”
That right also became every REALTOR®’s responsibility. For all the progress made to raise awareness and end discriminatory practices, as specified in the law and the REALTORS® Code of Ethics, the challenges for the industry and society persist. Fifty years later, REALTORS® commitment to upholding the principles of fair housing remains a top priority.

Despite all of the strides that have been made in Fair Housing, we must learn from the past. Housing is not a special interest; it is a human right. NAR and the RI Association of REALTORS® is committed to safeguarding this right.

Our vigilance must continue so that future generations may also enjoy the benefits of Fair Housing.

Some areas of concern include:

1. How to avoid Steering claims in the age of big data;
2. How emotional support animals like therapy dogs are finding their way into fair housing law;
3. Illegal discrimination based on familial status.
While we may not be able to predict the adversity of our society, or the challenges of the market place, in the future, we must always work together as a nation, and as REALTOR® professionals, to protect the right of Fair Housing for ALL who live here in the greatest country on earth.