Montgomery County
In the summer of 2024, Montgomery County, Maryland enacted a rent control ordinance that limits annual increases in rent to three percent plus inflation with an absolute maximum of six percent. As a result, multifamily building permits have significantly decreased.
A recent report from the County reveals that in the seven quarters before rent control was adopted, an average of 582 multifamily building permits were issued per quarter. In the roughly four quarters since rent control was put in place, that number fell to just 23.
In fact, the report notes that of the 92 multifamily units that were permitted between late 2024 and mid-2025, 54 of them belong to a single 55+ community while the other 38 are for-sale units that are only counted as multifamily because they fall under commercial building codes.
Policies
Unfortunately, the rental market collapse in Montgomery County is only the latest example of policy making that ultimately hurts renters.
St. Paul, Minnesota enacted the nation’s strictest rent regulations in 2022 and, as a result, multifamily building permits dropped nearly 80 percent. Right across the river, meanwhile, Minneapolis focused on permitting reform with the intent of loosening regulations and building more housing. Construction in Minneapolis boomed and rents remained low. From 2022 through 2024, Minneapolis’ average rent grew 0.7 percent while St. Paul’s grew 1.8 percent.
In New York City, it is estimated that over 25,000 rent-stabilized units are being kept off the market. Over 95 percent of these empty apartments would reportedly be renovated and placed back on the market if payment standards were raised. In San Francisco, rent control decreased the number of rental units by 15 percent.
NAA’s Outlook
The housing supply crisis continues to gain prominence as city, state and local policymakers turn their attention to affordability concerns. While rent control is politically expedient, its deleterious impact on investment and construction only exacerbates the ongoing shortage of affordable units.
The National Apartment Association and its affiliate partners will continue to advocate for sustainable policies that expand the rental housing stock and ensure a healthy, affordable housing market.