Rent Control
Candlefocus EditorRent control is applied in different ways in different jurisdictions, but the most common form is a limit on the amount a landlord can increase the rent on existing tenants. This usually happens when a certain amount of time has passed and the tenant renews their lease. It is also typically applied to only certain types of housing, such as multifamily dwellings. This prevents landlords from increasing the rent abruptly or significantly, as this could result in unfair financial burdens for tenants.
In New York City, rent-controlled apartments are highly desirable due to the large price differences for similar apartments just outside of the rent control area. While rent-controlled apartments provide some financial respite for their tenants, the competition to get one can be fierce.
Rent stabilization is a different form of rent regulation that applies to certain buildings with multiple apartment units. It limits the amount that the rent can be increased each year, generally to keep it in line with inflation rates. Other forms of rent regulation do not usually involve rent caps, but rather provide incentives to landlords in exchange for rent reduction.
Oregon became the first state in the U. S. to enact a statewide rent control law in 2019. This law limits rent increases to approximately seven percent per year, and provides additional protections for tenants. This legislation is an example of the type of measures some local governments have taken in an effort to improve the affordability of housing for their citizens.
Overall, rent control is an important part of the American residential rental market. It is a way to ensure that rent prices are kept reasonable for existing tenants and prospective renters, but it is often controversial for its potential to limit choice and access to quality housing units. The implementation of these regulations is changing, especially as more states look to legislation to provide more protections for renters.