Rent Control Experience of St. Paul, Minnesota, May Offer Lessons for Other Jurisdictions

Economic research has universally shown that rent control laws can lead to a reduction in the available supply of housing by reducing the financial incentive for developers to add new units. Moreover, such ordinances also can create a disincentive for multifamily building owners to make capital improvements to their properties by reducing their potential return on investment. Hence, renters can face worsening market conditions with less supply and diminishing quality of rental properties over time.