Rent Control Legislation: What Is It?

You may have seen recent news reports about rent control measures taken in Oregon. Many lawmakers are taking a closer look at legislation that would enact limits on rising rent costs and the impact it could have on both the housing market and broader economy.

What is rent control?

Rent control measures are local, and state regulations that limit the amount landlords can charge for rent. In the case of Oregon, landlords will be prohibited from raising the rent more than 7% more than increases in the consumer price index, and can only do so once per year. It also places additional limits on the cases where landlords can terminate leases, even month-to-month.

As housing costs rise, many of those in public office are considering what the government should do to make sure that Americans can afford safe housing.

Who benefits from rent control legislation?

The most obvious benefits will be to renters. Many renters in Oregon testified that rent increases were pushing them out of their homes, out of work, and out of the state entirely. By keeping rent prices at more manageable levels, it allows individuals and families to have a more accurate long-term financial plan and take advantage of opportunities for promotion and setting down roots they might otherwise avoid.

Lawmakers are also hoping that rent control will benefit the economy. Many see the rise in homelessness as a direct result of higher housing costs. They hope that by keeping rent prices from significant increases, it will allow more people to stay in their homes. Currently, some form of rent control measures exists in California, Maryland, New York, New Jersey, Washington, DC, and now Oregon.

As always, please contact my team and me if you have any questions; we are more than happy to assist you!