In the face of high costs and various economic headwinds, rental housing providers continue to experience incredibly narrow margins that cannot sustainably withstand additional strain. In fact, according to the National Apartment Association's (NAA) Dollar of Rent research, 93 cents of every rent dollar pay for things necessary for the operation of rental homes.

Despite these financial constraints, housing providers nationwide are also contending with rent regulations that artificially cap rent increases and exacerbate an operator's cost burden. While well-meaning, these policies are riddled with unintended consequences that harm the rental market and the very residents they intend to help.

NAA recently engaged Capital Policy Analytics to examine the empirical link between rent control policies and the quality of housing. The study examined data on neighborhood and housing quality in the 15 largest metropolitan areas from 2015 to 2021, using data from the U.S. Census American Housing Surveys (AHS). The resulting report suggests that such policies lead to a reduction in housing quality and can trigger a chain reaction that leads to a deterioration in neighborhood quality.