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The proposed Rent Control in Massachusetts is drawing a lot of attention from property owners, tenants, and real estate professionals.
Here’s the proposed Rent Control Law in Massachusetts at a glance:
Proposed Cap: Annual rent increases would be limited to the rate of inflation (CPI) or 5%, whichever is lower.
No Vacancy Reset: The cap would apply even if a tenant moves out and a new tenant moves in.
Base Rent: Future increases would be calculated from the rent in place as of January 31, 2026.
Scope: Statewide
Exemptions include:
Owner-occupied buildings with four or fewer units
New construction for the first 10 years after receiving a certificate of occupancy.
Educational, religious, or nonprofit housing.
Short-term rentals typically rented for fewer than 14 days
Next Steps: Lawmakers at the Massachusetts State Legislature have until early May 2026 to either adopt the proposal, offer an alternative, or take no action. If lawmakers do not act, supporters must collect approximately 12,500 additional signatures by July 1, 2026 to place the question on the November 2026 ballot. This proposal is already facing legal challenges which could affect timing, structure, or ballot language as the process moves forward.
There is no question that rents have increased significantly in recent years. The COVID era reshaped the economy and pushed inflation to levels not seen since the early 1980s. Housing costs were no exception.
To evaluate whether rent control is the right solution, we need to understand what is driving high rents in the first place.
The primary factor in Massachusetts is limited housing supply. Housing production has not kept up with demand for decades. Greater Boston alone has an estimated 150,000+ housing unit deficit, according to Banker & Tradesman’s analysis, placing it among the largest housing shortages in the nation.
This shortage has pushed vacancy rates down to 2–3% in many areas. When vacancy rates are that low, pricing power shifts toward landlords. Simply put, too many renters are competing for too few units.
If the root issue is supply, the next question becomes: how would rent control impact new housing development?
This measure effectively brings new housing supply to a halt. Even with a 10-year exemption, real estate developers and investors evaluate projects based on returns that extend well beyond that window. When developers become uncertain about long-term returns, they simply move to markets that have not adopted these caps.
The long-term solution to rising rents is not limiting housing, but making it easier to build more of it.
Massachusetts consistently ranks among the most difficult states for new development. Lengthy permitting timelines, restrictive local zoning, and high construction costs all slow the delivery of new housing. When projects take years to approve and costs continue to rise, fewer units get built. Recent statewide ADU reforms are a step in the right direction. They encourage modest increases in density and allow homeowners to add units without large-scale redevelopment. Policies like this expand supply gradually and sustainably.
Expanding pro-housing initiatives, streamlining approvals, and reducing regulatory bottlenecks would encourage more development. When cities create an environment where building is feasible, the benefits are broader than just new units. Increased housing supply supports local job creation, strengthens the tax base, and over time helps bring vacancy rates back to healthier levels.
As supply begins to catch up with demand, rent growth naturally stabilizes.
This is the first part of our three-part series on the proposed rent control measure in Massachusetts. Check out our website www.lvproperties.com for parts two and three, we will take a closer look at its potential effects on housing quality, health and safety and overall quality of life.
Jason Rizk
Managing Partner
Longview Properties
