Centerline Development

How do housing policies affect future development?

While rent control is often intended to improve affordability, it can also influence whether new housing gets built at all.

Lower returns can reduce new construction. Developers and investors evaluate whether new housing projects are financially feasible. When future rental income is uncertain or restricted, fewer projects may move forward.

Financing becomes more difficult. Lenders look closely at projected income when approving housing developments. Rent restrictions can make financing harder to secure, especially for multifamily projects.

Supply shortages can worsen. If fewer new units are built, the existing housing shortage becomes more severe—placing even more upward pressure on rents across the broader market.

Long-term affordability suffers. Policies focused only on controlling current rents may unintentionally reduce the future supply needed to stabilize prices over time.

The result can be a difficult tradeoff: Short-term relief for some, but fewer homes for future renters.

If Massachusetts wants lasting affordability, increasing housing supply must remain part of the conversation.