What Is Rent Control?
Typically enacted at the city or county level, these laws cap annual rent increases for certain residential units.
Rent control policies vary widely.
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Its important to note that rent control is not very common in the United States today.
As of 2024, only about 305 municipalities nationwide have some form of rent control on the books.
In contrast, at least 30 states explicitly ban cities from enacting rent control.
A Brief History of Rent Control in the U.S.
Some cities and states imposed temporary rent limits and eviction moratoriums around 19191924 to curb skyrocketing rents.
The modern concept of rent control took hold during World War II.
At the peak, roughly 80% of U.S. rental housing was under rent control during the war.
Cities with severe housing pressure including New York and cities in California began adopting rent stabilization ordinances.
By the early 1980s, dozens of cities had rent control, but a backlash was brewing.
In the 1980s and 1990s, many states passed laws to prohibit any new local rent control.
Today, we are seeing a resurgence of interest in rent regulation as housing costs have soared.
In 2019, Oregon made history by becoming the first state to enact a statewide rent control law.
That same year, California passed AB 1482, imposing a statewide rent cap and eviction protections.
However, the story becomes more complex when looking at the overall rental market.
The result: new apartment construction plunged.
Over decades, this can mean a city adds fewer secondary units or conversions than it otherwise might.
Thats double the length of stay.
This greater stability has many positive ripple effects for families and communities.
However, there is a flip side: reduced mobility can lead to inefficiencies or mismatch in housing allocation.
Impact on Gentrification and Neighborhood Change
Rent controls relationship with gentrification is complex.
The Stanford study of San Francisco found that rent control likely fueled the gentrification of San Francisco.
A dramatic real-world example comes from Cambridge, Massachusetts.
When rent control was abolished there in 1995, neighborhoods that had been relatively affordable rapidly gentrified.
Historical evidence and surveys support this concern.
Some regimes also permit pass-through of specific cost increases (like tax hikes or utility increases) into rent.
Each citys approach is a bit different.
Today, NYCs system is quite complex, with two main programs: rent control and rent stabilization.
Rent-stabilized units are generally in buildings of 6 or more units built between 1947 and 1974.
Under stabilization, landlords can raise rents only by a percentage determined annually by the NYC Rent Guidelines Board.
San Francisco
San Franciscos rent control was adopted in 1979.
It covers most rental units in buildings constructed before June 13, 1979.
San Francisco (like all California cities) allows vacancy decontrol due to the Costa-Hawkins Act.
The outcome is that many long-term renters in San Francisco pay well below the market rent.
Los Angeles
Los Angeles has had rent stabilization since 1978.
Like SF, Los Angeles must abide by Californias Costa-Hawkins law, so vacancy decontrol is in effect.
Oregons law (SB 608) was the first of its kind in the U.S.
This cap applies to most rental units that are over 15 years old.
Importantly, AB 1482 does not override stronger local rent control; rather, it sets a floor.
It also included a statewide ban on no-cause evictions after one year of tenancy.
Landlord and Developer Adaptation
We can expect landlords and developers to continue adapting to any new regulations.
Therefore, well likely see an increasing call for pairing rent stabilization with robust housing production and subsidies.
