A new study conducted by MetroSight economists—sponsored by the National Multifamily Housing Council and the National Apartment Association—reveals that certain housing regulations are contributing to increased rent costs, particularly impacting low-income renters and those in smaller multifamily properties. This research builds on earlier findings released earlier this year.
The report focused on four types of regulations: source-of-income protections, eviction laws, resident screening requirements, and state preemption laws. Key findings from the study include:
– Resident screening regulations were found to raise rents by between 1.5% and 3.4%, equivalent to around $252 to $708 more per unit annually.
– Source-of-income regulations led to a rent increase of between 5.2% and 5.3%.
– Eviction laws were associated with rent increases ranging from 5.9% to 6.3%.
Bob Pinnegar, president and CEO of the National Apartment Association, emphasized the implications of the findings:
“As housing affordability continues to be a nationwide concern requiring action from state, local and federal lawmakers, this study importantly shows how misguided regulations have the ability to increase monthly costs for renters. Now more than ever, our nation needs responsible, sustainable policy solutions that, instead of raising costs, work to boost the supply of housing and improve affordability long-term.”
These findings underscore the need for policymakers to carefully evaluate the potential unintended consequences of well-intentioned housing regulations, particularly as they affect affordability in already strained rental markets.
