Rent Control · Understanding the Long-Term Tradeoffs
As housing affordability remains a priority in communities across the country, rent control policies are often proposed as a potential solution. While well-intentioned, experience from markets where rent control has been implemented shows that these policies frequently produce unintended consequences that can worsen affordability over time.
A recent example highlighted by the National Apartment Association comes from St. Paul, Minnesota, which adopted one of the nation’s strictest rent control ordinances in 2021. The policy capped annual rent increases at three percent with no adjustment for inflation, operating costs, or new construction.
The result was immediate. Multifamily development in St. Paul declined sharply, with several planned projects paused, redesigned, or canceled altogether. Developers redirected capital to nearby jurisdictions without rent control, while existing property owners faced reduced flexibility to maintain and reinvest in their communities. In response to these impacts, city leaders later amended the ordinance to exempt new construction, acknowledging the policy’s chilling effect on housing supply.
This example illustrates a broader pattern seen in rent-controlled markets. When rent caps limit the ability to respond to rising costs such as insurance, property taxes, and maintenance, housing providers often scale back investment. Over time, this can slow housing production, reduce housing quality, and constrain availability, placing additional pressure on renters not covered by the controls.
For local leaders evaluating housing policy tools, the lesson is clear: long-term affordability is driven by supply. Policies that support by-right development, zoning flexibility, and regulatory certainty encourage new housing delivery and reinvestment in existing communities. Targeted assistance programs can help households in need without discouraging the production of new housing.
Charlotte’s long-term affordability and economic competitiveness depend on policies that expand housing choice and encourage continued investment, ensuring the region can grow in a balanced, sustainable way.
Reference
National Apartment Association. (2025). Rent Control Continues Stalling Housing Supply.
https://naahq.org/news/rent-control-continues-stalling-housing-supply