Worcester Business Journal

wbjournal.com | January 24, 2022 | Worcester Business Journal 21 Avoid the rent control trap V I E W P O I N T E D I T O R I A L G reater Worcester is enjoying a residential boom, with housing demand in all areas outpacing the supply as more Massachusetts residents realize Central Massachusetts has greater affordability than they will ever find in Greater Boston. With all the benefits that popularity brings comes the strain of costs and the desire among some to reach for restrictive, even draconian, rent control policies and proposals, which will only further exacerbate the housing affordabil- ity crisis. In St. Paul, Minn., for in- stance, activists succeeded in enacting an extreme rent control initiative capping rent increases to 3% annually, including for newly constructed housing. Already, devel- opers are halting in St. Paul, fearing they will be unable to finance new housing with artificially capped rents. While we need to urgently address the housing crisis, implementation of an antiquated concept like rent con- trol is not the way to go. Rent control is ineffective and harmful. e high rents in the uncontrolled markets of New York and San Francisco demonstrate rent control benefits very few, and not necessarily those in greatest need, at the expense of the larger community and society. at's why the majority of states, led by Massachusetts, have wisely enacted laws prohibiting local municipalities from imposing rent control. e best ways to address housing affordability is to ensure supply can meet demand, as well as targeted gov- ernment-funded housing assistance. During times of crisis, extending direct rental assis- tance to those who need it most is more effective than rent control. Massachusetts has prioritized this support through a successful and ongoing eviction diversion program, which our industry has supported. roughout the pandemic, activists have taken every opportunity to blame property owners and housing providers for our housing affordability crisis, even though property owners have been asked to amass significant debt in the face of missed rent payments and eviction moratoria. Massachusetts has failed to keep up with supply needs because local governments have restricted the construc- tion of new housing for years through antiquated zoning laws and arduous permitting processes. In the last legisla- tive session, Massachusetts enacted the Housing Choices law, which provides powerful incentives for communities to invest in housing. We need to give those policies time to work before we hit the panic button. Right now, the most effective thing state and local gov- ernments can do to address the pain being felt by renters and housing providers is to ensure every struggling renter has access to available government resources and rental assistance. From there, it's time to put aside proposals that may make for good soundbites and enact meaningful solutions to bring relief to families in need. Lynn Bora is executive vice president of the WinnCompa- nies in Boston and will serve as the 2022 chair of the Great- er Boston Real Estate Board, which has more than 12,000 members throughout Eastern and Central Massachusetts. BY LYNN BORA Special to the Worcester Business Journal The above Editorial is the opinion of the WBJ Editorial Board. The Viewpoint column, the A Thousand Words cartoon, and the Word from the Web commentary represent the opinions of their authors and do not necessarily reflect the views of WBJ or its staff. WBJ welcomes letters to the editor and commentary submissions. Send them to bkane@wbjournal.com. A T H O U SA N D WO R D S B Y R A M Ó N L . S A N D O V A L e year of the entrepreneur Lynn Bora L ast year was quite the year for new busi- ness startups in Central Massachusetts. rough November, 2,567 businesses in the region incorporated for the first time in 2021, according to Massachusetts Sec- retary of the Commonwealth data compiled by WBJ. at's more than the 12-month totals of 2017, 2018, 2019, and 2020. Even if December's numbers come in flat, the Central Massachusetts business communi- ty is looking at least a 10% year-over-year increase in new company starts in the last year. e same trends are being seen across the state and the nation. e 11-month total statewide of 14,262 new business starts in 2021 also beats out the 12-month total of the previous four years. rough September 2021, nationally there were 1.4 million new businesses, the most of any year ever through the first three quarters, according to U.S. Bureau of Labor Statistics data analyzed by Washington, D.C. advocacy organization Economic Innovation Group. During a time period where businesses across all sectors are seeing a labor shortage, the fact more people are striking out on their own might seem to be counterintuitive, and it's certainly exacerbating those shortages. However, the surge in startups may very well be the result of shiing attitudes toward work and professional life brought on during the COVID pandemic, as more people are questioning their work-life balance and how rewarding their professional lives are. Regardless of the reason and the near-term impact on existing businesses, having more startups bringing new energy, ideas, and inno- vations will undoubtedly be a long-term win. While a number of circumstances can lead to someone putting up their own shingle, at the heart of that decision is a passion for the work, an indepen- dent attitude, and an expertise in their field. Having these entrepreneurs turn their ideas into profit-driv- en companies will strengthen the economy. An easy example of that passion put to good use is restaurant entrepreneur Son Vo, the subject of this edition's Shop Talk on page 22. As the co-owner of three local restaurants, Vo has had a harder pandem- ic experience than most, facing shutdowns, staffing shortages, rising rents and food costs, and food scar- city. Yet, he's not only kept his businesses afloat, Vo – a South High Community School graduate and Viet- namese immigrant – has bought the former Wexford House on Shrewsbury Street in Worcester, to likely become the new home of his Pho Sure restaurant in Shrewsbury. Along with three of his sisters, the group is relying on their hard work and ability to save to find long-term stability for their eatery. Entrepreneurs abound in our region, and if 2022 turns out to be anything like 2021, their numbers will continue to grow. As these startups find their footing, many will fall by the wayside, others will find viabili- ty, and the best will find sustainable success. We're all awaiting the arrival of the post-pandemic economy. But many are not waiting for that sunny day to sail. ey are launching their boats in still inclement weather, tacking to navigate their path. W W

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