AAGO & FAA Joint Response on Rent Control
On February 28th, AAGO and FAA issued the following "Joint Statement" in response to rent control proposals. Links to media coverage can be found below the press release.
JOINT STATEMENT ON RENT CONTROL PROPOSALS
On Behalf of:
- Bonnie Smetzer, President, The Florida Apartment Association (FAA)
- Lee Rogers, President, The Apartment Association of Greater Orlando (AAGO)
- Amanda Gill, FAA Government Affairs Director,
- Raleigh “Lee” Steinhauer, AAGO Government Affairs & Legal Counsel,
The apartment industry recognizes the housing shortage has impacted housing affordability in Central Florida. Housing affordability is a national challenge due to the rising demand for rental housing as well as barriers to development. We look forward to working collaboratively with state and local policymakers to increase the supply and affordability of housing in the state of Florida.
While some lawmakers may view rent control as a viable option, in practice these policies have demonstrable and well documented negative effects. Evidence does not just suggest, it confirms that these policies have a detrimental impact on the housing market. In practice, rent control benefits a select few at the expense of the rest of the rental population, while reducing the quantity and quality of housing options. To see the true impact of rent control, look no further than the most expensive rental markets in the country. For example, in Los Angeles, uncontrolled rents increased more than three times faster than rent-controlled units after the rent control policy was put in place. Similarly, in San Francisco, rent-controlled properties were nearly 10 percent more likely to convert to condos than other buildings, which resulted in a notable reduction in the supply of rental housing.
In light of the indisputably negative implications of rent control, the apartment industry supports more effective alternatives to increasing the supply and reducing the cost of housing. Some of these alternatives include: enhancing and expanding public-private partnerships, reducing regulatory barriers, and expanding housing choice. The Florida apartment industry looks forward to continuing to work with state and local policymakers to improve housing affordability in the state of Florida.