Rent control has become a highly-charged issue in many cities and states. Oregon and New York have passed measures placing caps on rent increases; California is considering a similar measure to name a few examples.
Indeed, housing affordability is a serious issue but rent control may not be the best way to address this concern, concludes an analysis by Real Capital Analytics. Already, writes Jim Costello, new demands for rent control are repricing assets in a way that may lead to loan defaults and lower housing availability over the long run. Namely, he writes, “Investors and lenders are repricing assets in markets where rent control exists or is being introduced.”
Read more...Multifamily Cap Rates Rise as Rent Control Gains Momentum via GlobeSt