Boston Rent Control Proposal for 2023

Introduction:

Today, we will be discussing the Boston Run Control, including the details of Mayor Wu's proposal that is currently being reviewed by the Boston City Council.

Overview:

Boston Rent Control, also known as the rent stabilization plan proposed by Mayor Wu, aims to limit annual rent increases to 6% plus any additional changes from the Consumer Price Index, with a cap of 10%. This new law applies to apartments and buildings within the city limits of Boston, with some exceptions. Small landlords with two to six unit buildings, as well as new constructions for the first 15 years of their life, are exempt from this policy to avoid disincentivizing builders and contractors from increasing the supply of apartments in Boston.

Previous Rent Control Bills:

Currently, rent control is not in place in Boston, and there are no restrictions for landlords or other parties on rent increases. However, the state legislature has considered rent control bills in the past that would allow limitations on rent increases. In 2019, a bill was introduced to the Massachusetts House of Representatives that would have given cities and towns the ability to enact rent control policies, but it did not progress out of the committee.

Headwinds:

Mayor Wu's proposal still needs approval from the Boston City Council and the state government. It is important to note that the concept of rent control was deemed illegal in 1994 in Massachusetts. Therefore, Mayor Wu faces significant challenges to get her proposal passed. There are concerns that the 6% cap plus inflation may disincentivize landlords from maintaining their buildings and doing repairs, as they would not be able to recoup the value of those repairs by raising rent. There is also opposition to the proposal on both sides of the political spectrum.

Conclusion:

Mayor Wu's proposal would require approval from the state government, including the governor. While Governor Healy has not yet taken a clear stance on the issue, there is potential for approval at the state level. Rent control was previously in place in Boston, Cambridge, and Brookline, but was later repealed. We invite our readers to leave their comments on whether they believe rent control is necessary in Boston or if other solutions, such as increasing the supply of housing, should be pursued. We will continue to provide updates on this topic in the future.