As we consider the current administration’s proposal to implement a rent control mechanism, capping rents at 5% for owners of 50 or more units, it is crucial not to lose sight of the many other challenges contributing to the growing affordability crisis. There has been no shortage of criticism on this plan on LinkedIn, grounded in years of well-founded research and opinions from numerous housing experts across the nation. Almost unanimously, the consensus is that imposing national rent control will exacerbate existing housing shortages—now averaging 1.5 million units nationwide—and increase, rather than decrease, affordability.
I encourage you to read the attached article from the National Association of Home Builders (NAHB), which offers a ten-point guide as a blueprint towards equitable housing. Pay special attention to points #1, #5, #6, and #8. While every point on the NAHB’s guide is significant, those I highlight have been responsible for adding over 40% to multifamily development and over 20% to single-family development in regulatory costs alone.
In Puerto Rico, these costs are even higher, further complicated by grossly inequitable fair market rents that are unsustainable at any level. Rent cap legislation was also introduced fairly recently, ignoring the massive disfunction in permitting, land-use restrictions, approvals and archaic zoning statutes, amongst others.
This isn’t rocket science; it’s a matter of supply and demand. With high demand and limited inventory, we all know who ends up paying.
#NAHB #ACPR #affordablehousing #realestatedevelopment #multifamily #singlefamily #puertorico #realestate #housingcrisis #apartments #homebuilding #housing #housingpolicy
