November 8, 2021 |
Updated November 8, 2021
Two notably different approaches to rent control were approved by voters in St. Paul and Minneapolis.
On November 2, 2021, Minneapolis and St. Paul, Minnesota voters narrowly approved rent control in two unprecedented ballot initiatives. In Minneapolis, the passage of Question 3 enables the City Council to set rent regulation policies while St. Paul voters’ approval of Question 1 will institute a strict rent stabilization ordinance capping rent increases to 3 percent annually with limited exceptions.
While limits on rent increases could sound like an effective way to promote long-term affordability in a region, the reality is just the opposite. The overwhelming majority of economists agree that regulating rent prices will exacerbate housing affordability shortages, decrease the quality of existing units and hurt the regional economy.
The National Apartment Association (NAA) is disappointed with the outcome of these ballot initiatives given the likely consequences on the Twin Cities’ renters, housing providers and the broader housing industry. We commend the Minnesota Multi Housing Association for their tireless effort in advocating against these harmful ballot questions and look forward to working with them further, especially in Minneapolis where ultimate action on rent control will be decided by the City Council.
NAA continues to aggressively oppose all forms of rent control through robust grassroots and advocacy endeavors. To learn more about rent regulation policy, please contact Ben Harrold, NAA’s Manager of Public Policy.