Rent Control Has Failed Everywhere It's Been Tried

Arizona Cities Shouldn't
Repeat the Same Mistake

The Promise vs. The Reality

Rent control, rent caps, and rent stabilization ordinances are often sold as a quick fix to lower rent. The promise is simple: Cap rents and housing will become more affordable.

The reality? In city after city where rent caps have been tried, they have failed.

Across the country, rent stabilization policies have led to fewer homes, higher long-term rents, deteriorating housing quality, reduced investment, and plummeting local revenues.

These outcomes are well documented and consistent. Look to St. Paul, Minnesota. They adopted rent caps in 2021. The policy failed so badly, it was quickly repealed.

Arizonans deserve housing solutions that actually work.

What Happens After Rent Control, Rent Cap or Rent Stabilization Ordinances Pass

1. Housing Supply Shrinks

Housing developers stop building. Existing owners pull units off the market.
In 2023, Montgomery County, Maryland enacted a rent cap. Since its implementation, the county has reported a 96% drop in multifamily building permits. When fewer rental homes get built, rents go up for everyone.

2. Rents Rise for Everyone

Rent caps protect a small number of renters while shifting costs to everyone else.
In New York City, decades of rent regulation have created a two-tier market. A few residents get to pay below-market rent, while new or relocating renters face some of the highest rents in the country.

3. Housing Quality Declines

When owners cannot recover operating costs, maintenance is delayed or skipped entirely.
Research consistently shows that rent-controlled buildings experience fewer repairs, delayed maintenance, and fewer upgrades. Over time, this results in deteriorating living conditions.

4. Local Government Tax Revenues Decline

Property values decline when rent caps are implemented.
As values fall, local governments collect less revenue. This cuts funding for schools, parks, police and fire departments, streets, libraries, and other essential services.

In St. Paul, after rent control passed, aggregate residential property values dropped by 6 to 7 percent. The city collected 4 percent less in property tax revenue as a result.

Why Arizona Is Especially at Risk

Arizona already can't build enough homes for today's residents and the 100,000 newcomers who move here annually. Rent control would make the crisis worse.

Slower home and apartment construction
Fewer rental options for students, workers, and families
Higher rents for anyone not protected by rent controls
Less investment in neighborhood improvements

If Arizona's housing supply contracts, it will take years or even decades to recover.

What Actually Lowers Rent

Cities that successfully improve housing affordability focus on increasing supply rather than imposing price controls.

Faster permitting and zoning reform
Encouraging new apartments and mixed-use development
Incentives for affordable housing construction
Reducing regulatory costs that drive up rent

These policies expand choices, increase competition, and stabilize prices without distorting the housing market.

Learn From Other Cities

Don't Become the Next Case Study

Rent control has been tried.
The results are clear.
Rent control fails every time.

Tell your state and local policymakers to choose policies that increase housing supply and affordability without repeating failures seen elsewhere.