A rent-control measure that would cap annual rent increases in all cities and towns in Massachusetts at the rate of inflation could cost the state $300 billion in declining property values over a 10-year period, according to a study from the Greater Boston Real Estate Board and the Tufts Center for State Policy Analysis. “The hit to urban areas and college towns would be especially acute, with projected declines of 15-20%,” according to the Tufts Center.
The Boston Business Journal reported that rural areas would face tax increases averaging 8.2% due to lower revenues, with projected increases climbing to 10%in suburban areas and 19% in urban areas. Boston in particular would be hit hard, as the city has already faced property tax shortfalls caused by office buildings losing value after the pandemic.
The rent-control initiative may appear on ballots statewide in November. Massachusetts voters banned rent control measures in 1994.
The post Study: Rent Control Could Cost Massachusetts $300B in Property Values appeared first on Connect CRE.