Worcester Business Journal

wbjournal.com | May 4, 2026 | Worcester Business Journal 9 in rental units, according to the U.S. Census data. e initiative will need to overcome an increasingly organized full-court press against it. e Massachusetts Association of Realtors, the Small Property Owners Association, and MassLandlords all oppose the mea- sure. Opponents say rent control will leave property managers without enough income for building main- tenance, slow new housing devel- opment, and lower values for mul- tifamily properties. Municipalities' residential tax base could shrink up to 9%, according to a report from Tus University and Greater Boston Real Estate Board. Supporters of rent control cite a 2018 University of Southern Cali- fornia report saying rent stabilization policies increase housing stability and have minimal impact on new con- struction. "We need to both build more housing and stop corporate landlords from raising the rent astronomically on working people," said Carolyn Chou, executive director of Homes for All Massachusetts, one of the groups behind the rent control cam- paign. "at's why we have a 10-year construction exemption in the ballot question, to support new construc- tion, while also stabilizing communi- ties now by limiting the amount rents can increase year over year." Impact of development Healey's multifaceted approach to solve the Massachusetts housing shortage and rising cost of living has focused on new housing production. Massachusetts needs to build 222,000 housing units by 2035 to meet demand, according to the Execu- tive Office of Housing and Livable Communities. e rent control initiative has caused at least six developers to pull out of planned housing projects, Healey told an audience at a Great- er Boston Chamber of Commerce event in March. Not every developer is overly concerned about the potential impact. Radson Development, a New York- based developer planning to build apartments in an empty Downtown Worcester lot at 56 Pleasant St., is used to working with rent restrictions. e firm operates affordable housing buildings in New York City, with the city's Rent Guidelines Board establish- ing yearly rules for rent increases. "Here in New York, we're pretty accustomed to rent control," said Jon- athan Beuttler, senior vice president of Radson Development. "We have the rent guidelines for as long as I've been doing business." Beuttler is more focused on what funding the Worcester project can obtain through MassHousing and other sources. e Massachusetts rent control proposal didn't really raise concerns for Radson, although he said the fluctuating cap based on CPI may have an impact. "Capping rents works in terms of affordability, but from a developer operating standpoint, it only works so far as we can pay back our banks," he said. Overruled? Keep Massachusetts Home, the pro-rent control campaign, reported a total of $747,702 in contributions and in-kind donations in its January filing with the state's Office of Campaign and Political Finance, much of that coming from labor and faith-based groups. Housing for Massachusetts, the opposition campaign, reported $458,234. Its coffers are expected to grow; the National Association of Realtors has committed $3 million to oppose the initiative. Rent control proponents are simultaneously advancing the ballot initiative while pushing for a legisla- tive compromise, where municipali- ties would have the option to impose rent control. Even if the ballot initiative pass- es, Massachusetts law allows for the Legislature to modify voter-approved statutes, or to even repeal them entirely. Sen. Moore said he doesn't want to overrule voters, but he and McKenna kept the door open to potential legis- lative tweaks if the rent control ballot initiative passes. "It will be an interesting, to-be-de- termined course if this initiative gets adopted," McKenna said. PHOTO | ERIC CASEY W Rent control is bad for the economy Massachusetts voters are expected to decide in November on a rent stabilization ballot question, which would cap annual rent increases at 5% or the rate of inflation, whichever is lower. Supporters say it would help stabilize housing costs for workers, while opponents argue it could discourage new housing development and reduce municipal tax revenue. When polled online, the majority of WBJ readers said rent control would have a negative impact on the Central Massachusetts economy. What overall impact would rent control have on the Central Massachusetts economy? Rent control impact on Worcester rents If rent control provisions pushed by supporters of the ballot initiative had been in effect since 2016, the average Greater Worcester effective rent would be $105 lower per month. Effective Real year-over-year CPI Effective rent Year rent increase increase %* with rent control^ 2016 $1,359 - - $1,359 2017 $1,394 2.58% 2.10% $1,388 2018 $1,430 2.58% 2.40% $1,421 2019 $1,480 3.50% 1.80% $1,446 2020 $1,534 3.65% 1.20% $1,464 2021 $1,576 2.74% 4.70% $1,533 2022 $1,695 7.55% 8.00%** $1,609 2023 $1,782 5.13% 4.10% $1,675 2024 $1,824 2.36% 2.90% $1,724 2025 $1,874 2.74% 2.60% $1,769 * = Using national CPI figures; the 2026 rent control ballot initiative language does not specify whether national or regional CPI would be used for calculations. ** = Year where CPI increase exceeded 5%. The ballot initiative ties the maximum percentage increase to the annual increase in Consumer Price Index or 5%, whichever is lower. ^ = Calculation does not account for newly constructed units, which would be under a 10-year exemption from rent control restrictions Sources: CoStar data from Worcester County, Minneapolis Federal Reserve 48% Overwhelmingly negative 17% Net negative 12% Overwhelmingly positive 11% Mixed impact 7% Net positive 4% Little to no impact 1% I'm unsure. The panelists at the Worcester Regional Chamber of Commerce event opposing rent control included (from left) Sen. Michael Moore, Rep. Joseph McKenna, developer Jackson Restrepo, and real estate broker Erin Zamarro.

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