Massachusetts Voters Back Ballot Initiative to Regulate Rent Increases in Local Cities
On November 7, 2023, Massachusetts voters made a significant decision that could reshape housing policies across the state. More than 50% approved Question 4, known as the “Tenant Protection Act.” This measure ends a 1994 statewide ban on rent control, empowering local governments to establish their own rent stabilization policies.
This vote marks a critical turning point in a longstanding debate over housing affordability in Massachusetts. The previous ban, enacted nearly three decades ago, prohibited cities from imposing restrictions on rent increases. While this new law does not enforce rent control statewide, it grants cities the flexibility to adopt such regulations based on their needs.
What Changed and Why
The surge in housing costs has sparked new urgency around the issue. Data from the Massachusetts Housing Partnership reveals that median rents in the Greater Boston area have skyrocketed nearly 75% from 2010 to 2023. This surge has vastly outpaced wage growth during the same period, leaving many residents struggling to afford housing. The Federal Reserve Bank of Boston has identified the region as having one of the strictest housing supplies, particularly impacting lower-income renters.
Under the new law, municipalities can cap annual rent increases, but certain parameters are in place. Local regulations must allow landlords to raise rents by at least the inflation rate each year and include exemptions for new constructions and smaller, owner-occupied properties. “This puts decisions into the hands of local communities,” said Carla Sanchez, a spokesperson for the campaign supporting the measure. “It’s about giving voters a tool to keep people in their homes.”
Who’s Impacted and How
This initiative will directly impact tenants and landlords across cities that decide to adopt local controls, with Boston poised to take the first steps. Mayor Michelle Wu, an advocate for rent stabilization, has indicated her support for an ordinance modeled after successful frameworks in cities like San Francisco and Portland. Currently, the average rent for a one-bedroom apartment in Boston exceeds $3,000.
The measure has raised concerns among landlords. “This creates uncertainty for property owners,” remarked Tom Dacey, president of the Massachusetts Rental Housing Association. He contends that rent control could deter investment in rental properties, potentially exacerbating housing shortages. Economist opinions on the subject divide sharply. A 2019 Stanford University study of rent control in San Francisco suggested that while long-term tenants gained from protected rents, the overall rental housing supply dwindled as landlords converted units into condos or removed them from the market altogether. Yet many supporters argue that well-crafted local policies can mitigate these negative repercussions.
Past and Present Context
The approval of this ballot measure reverses a ban that has stood for nearly 30 years. Before 1994, only three cities in Massachusetts—Boston, Cambridge, and Brookline—had enacted local rent control measures. The ban was propelled by landlord groups following a heated referendum vote that narrowly favored limitations on rent control. While past attempts to revive rent control legislation failed at the state level, this year saw a grassroots push that secured over 130,000 signatures to place the measure on the ballot.
The re-emergence of rent stabilization in Massachusetts mirrors developments in other states. In 2019, Oregon instituted a statewide rent cap, followed soon by similar measures in California. Now, over 180 jurisdictions across the U.S. have adopted some form of rent regulation, including communities in Maine and New York, as well as Minnesota’s St. Paul and Minneapolis with local measures instituted in 2021.
Looking Ahead
Notably, Massachusetts cities are not compelled to implement rent stabilization, but the newly passed measure clears a significant legal obstacle. Local city councils or voter referendums will determine whether and how to put these policies in place. The implementation will vary based on local housing dynamics and the political climate.
For instance, in Boston, Mayor Wu’s proposal includes tying rent increases to the Consumer Price Index, with a cap of 6% per year, pending City Council approval. Brookline and Somerville have expressed interest in exploring local regulations, while other towns may choose to maintain a hands-off approach.
The Massachusetts Department of Housing and Community Development reports that over 40% of renters in the state are struggling with housing costs, spending more than 30% of their income on rent. This issue is even more pronounced among low-income families. Advocates believe that this policy could safeguard tenants from displacement amid ongoing inflation and a housing crisis.
National Implications
The results from Massachusetts may resonate beyond state lines, influencing the national conversation surrounding housing affordability. As housing costs continue to climb, policies once deemed controversial are gaining renewed attention. Even at the federal level, the Biden administration has issued a “Blueprint for a Renters Bill of Rights,” emphasizing tenant protections without explicitly advocating for rent control.
Critics of the measure, however, argue that focusing on rent control is misguided. “What we need is massive investment in building more units,” Dacey stated bluntly. “Rent control is a Band-Aid. It doesn’t solve the core problem.” This sentiment surfaces amidst a challenge of sluggish construction rates due to inflation, labor shortages, and high interest rates. It raises the question of whether local and state governments will explore every available option, now that rent stabilization is again on the table in Massachusetts.
Conclusion
The decision by Massachusetts voters opens new avenues for local regulation of rent increases, effectively overturning a long-standing statewide prohibition. Approval of Question 4 signifies a shift in public sentiment toward housing affordability, granting cities authority to make crucial decisions that will affect tenants and landlords alike. The outcome of these policies will unfold over the coming months and years, determining the landscape of housing in Massachusetts and potentially beyond.
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