B
OSTON — Massachusetts’ top real‑estate groups have issued a warning about a proposed statewide rent‑control measure slated for the 2026 ballot. In a joint letter to city mayors and chamber leaders, CEOs Greg Vasil (Greater Boston Real Estate Board), Theresa Hatton (Massachusetts Association of Realtors), and Tamara Small (NAIOP Massachusetts) outlined the “unintended consequences” of what they say would become the nation’s most restrictive rent‑control law.

    The letter arrives after supporters confirmed enough signatures to push the question onto the ballot. The trio’s statement stresses that the proposal is not an opt‑in; it would impose rent limits on every one of the state’s 351 municipalities, regardless of local conditions. They warn that the measure would deepen the existing housing crisis, shrink the inventory of quality rental units, and undermine local budgets.

    Massachusetts is already lagging in new housing. The state’s inaugural comprehensive plan calls for 222,000 additional units over the next decade, yet 2024 saw only 14,338 new homes—one of the lowest per‑capita rates in the country. Without a larger supply, the state risks losing jobs, talent, and economic momentum.

    Under the proposed law, annual rent increases would be capped at the lower of 5 % or the consumer‑price index (CPI). With CPI averaging 2.57 % over the past twenty years, landlords—especially small‑property owners—would struggle to cover taxes, insurance, and maintenance. Historical data from Cambridge and Brookline show rental stock fell 8–12 % under similar restrictions.

    Developers face a long‑term dilemma. Projects that span 30–40 years must factor in future rent caps, which can erode financing and feasibility. A 2023 National Multifamily Housing Council report found that 88 % of investors shun rent‑controlled markets, and St. Paul, MN, saw an 80 % drop in new housing permits after adopting strict controls.

    The groups also point to broader property‑value impacts. A 2012 MIT study found that Cambridge’s property values rose $1.8 billion in the decade after rent control ended, largely in units not directly regulated. In Portland, Maine, where rent control passed in 2020, taxable property valuations fell 3.2–5.4 %, increasing homeowner burdens.

    GBREB, MAR, and NAIOP plan to spend the next year educating stakeholders—homeowners, community leaders, businesses, and elected officials—about the measure’s potential damage to families, schools, workforces, and local budgets. They argue that affordability can be achieved through zoning reform, expanded multifamily permitting, transit‑oriented development, and targeted rental assistance, rather than by constricting supply.

    The organizations have also released a fact sheet on the ballot question and the letter to mayors and chambers.