As supporters of local rent control options prepare to make their case before lawmakers, a real estate industry group warned in a new report that reversing the statewide ban on the policy would curtail the available supply of housing and cut into local property tax revenues.
The National Apartment Association on Monday published an analysis cautioning that imposing a 3 percent annual cap on increasing apartment rents could prevent Massachusetts developers from building 16,629 units of new housing over the next decade and imperil another 1,995 units through decreased spending on maintenance and repairs.
Together, those figures would represent more than a third of the more than 48,000 units the state needs to meet demand through 2030, NAA and the Greater Boston Real Estate Board, which represents thousands of property owners in the area, said.
In Boston, where Mayor Michelle Wu campaigned on bringing back some form of rent control to help manage housing instability and skyrocketing prices, the industry-backed groups said a 3 percent rent cap would prevent construction of 739 new units each year and forego $2.3 million in property tax revenue to the city.
Supporters of reversing the 1994 voter-approved law that forbids cities and towns from implementing rent control policies are hopeful that the changing of the guard in the governor’s office next year will boost their effort.
Gov. Charlie Baker opposes the push to revive rent control, and legislative leaders have shown virtually no interest in the idea.
Housing justice advocates and tenants plan to hold a virtual rally at 10:30 a.m. Tuesday, which Wu will attend, ahead of an 11 a.m. Housing Committee hearing where several bills that would allow local rent control options will feature.
