State Sen. Lydia Edwards, right, speaks at her swearing-in on Jan. 20, 2022, while Gov. Charlie Baker, center, looks on. Photo by Isabel Leon | Boston Mayor’s Office / Handout
As rents soar and evictions loom, it may be time for the real estate industry to radically reassess its lobbying and public relations strategy.
For unless something changes drastically in the housing market, rent control is headed for a comeback in Boston and possibly other cities in the state.
A city councilor and ally of Boston Mayor Michelle Wu, Lydia Edwards ran and won a special election in January for a state senate seat.
And now the Senate’s newest member predicts some form of rent control will make it through the legislature, if not this year then next, when Attorney General (and Democrat) Maura Healey may very well be settling into the corner office.
If so, industry groups representing developers, landlords and investors, by rejecting more measured and targeted proposals put forth by housing advocates, may be partially to blame for bringing on the thing they dread the most: sweeping caps on rents, the East Boston Democrat contends.
“They won’t even use the word displacement,” Edwards contends. “It is because of their hard-headed, singular focus, not living in reality, that rent control is back on the table.”
‘It’s the Same White Noise’
In particular, Edwards is frustrated by what she describes as the real estate industry’s no-to-everything approach in the face of seemingly unstoppable rent increases and a wave of speculation that is seeing deep-pocketed investors snap up apartment buildings.
Edwards is now helping push one of the mayor’s key housing proposals at the State House, legislation that would stick a 2 percent fee on condo and other residential sales over $2 million in Boston. The tax would raise as much as $100 million a year for affordable housing, supporters say.
Both the Greater Boston Real Estate Board and Gov. Charlie Baker have come out in opposition to the proposal.
Edwards, who will be stepping down from the City Council at the end of April, is also backing legislation that would give cities and towns the ability to give tenants – and nonprofits – a right of first refusal when apartment buildings hit the market.
That proposal has also come under fire from MassLandlords and other industry groups, arguing sellers could find their hands tied for months as tenants or nonprofit groups attempt to line up financing to close the deal.
However, Edwards contends all she hears from the real estate sector is the same old complaints that any fee or regulation will have a devastating impact, something she finds hard to believe given the surge in rents and prices during the pandemic.
“It is the same white noise – good economy, bad economy, they are always suffering,” she said. “The real estate community needs to be more creative in their pushback.”
Advocates Feel Wind Behind Them
While Edwards blunt critique may not be the message developers, apartment building owners, investor and brokers want to hear, it’s definitely one they should be listening to as the political warning lights start flashing red.
Both rent control and first-right-of-refusal bills remain alive on Beacon Hill as we head into the spring, having avoided being shunted off to study committees, generally a legislative kiss of death.
The newly minted state senator sees both bills getting another round of attention this spring amid another potential round of hearings is held.
Meanwhile, Boston’s new mayor unveiled a 23-member task force on Thursday that will work on filing a “rent stabilization” proposal with the legislature next year. Committee members include National Development managing director Brian Kavoogian, Colliers Vice President of Capital Markets Jeanne Pinado and Boston Residential Group CEO Kurtis Kemeny.
Scott Van Voorhis
The real estate industry held the upper hand for decades now amid public skepticism about interventionist government schemes.
But housing advocates and left-of-center lawmakers like Edwards are clearly feeling like the wind right is at their backs now.
Boston is not alone, with the city of St. Paul, Minnesota having capped rent increases at three percent and Oregon joining the rent control stalwart states of New York, New Jersey and Illinois with its own system, that limits rent hikes to an inflation-adjusted maximum, in 2019.
“Rent control used to be a curse word – now it’s back on the table,” Edwards said. “[Real estate industry leaders] are standing in the way of creative solutions.”
Scott Van Voorhis is Banker & Tradesman’s columnist; opinions expressed are his own. He may be reached at sbvanvoorhis@hotmail.com.
