City staff analysis concludes a rent cap would not effectively address city’s housing affordability issues, disincentivize new development.
April 17, 2023 |
Updated April 17, 2023
On April 14, Minneapolis city staff published an impact analysis, “Rent Stabilization Staff Analysis,” to provide in-depth background and research after voters approved an amendment to allow rent caps in November 2021.
The report recommends against implementing a rent stabilization policy, saying the cost to the city, including decreased tax revenue and sizeable enforcement costs, outweighs any potential positive effects and would only impact a small portion of renters. According to the report, “a rent stabilization policy would not effectively address the problem of renter cost-burden. It does not target relief to renters whose incomes are insufficient to afford rent in the housing market.”
The two recommendations from city policymakers were against the adoption of a rent stabilization policy and that the city should support, explore and invest in strategies to relieve renters of their cost burdens.
The analysis will be presented to the Mayor and City Council this month. Rent stabilization can go to a vote by residents if an ordinance is passed by the City Council.