Housing laws might be hurting the very population they aim to help.
A new follow-up study conducted by economists from MetroSight – sponsored by the National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC) – shows that some housing regulations increase the cost of rent, particularly for lower-income renters and those renting from small multifamily properties. This report importantly builds on findings released earlier this year, revealing that overregulation can increase operating costs.
“As housing affordability continues to be a nationwide concern requiring action from state, local and federal lawmakers, this study importantly shows how misguided regulations have the ability to increase monthly costs for renters,” said NAA President and CEO Bob Pinnegar. “Now more than ever, our nation needs responsible, sustainable policy solutions that, instead of raising costs, work to boost the supply of housing and improve affordability long-term.”
“As the nation continues to confront a housing affordability crisis, it’s critical that we understand how sometimes well-intentioned regulations may impact rent levels—particularly for those who can least afford increases,” said NMHC President Sharon Wilson Géno. “This new research finds that certain policies, while at times designed to protect renters, are associated with higher rents, especially for lower-income households. By bringing these data to light, we and our partners at NAA hope to support a more balanced policy conversation—one that supports renters while improving affordability and expanding the supply of rental housing.”
The research specifically analyzed the impact of source-of-income, eviction, resident screening and state preemption laws on rent costs. The study used two distinct and separate datasets, one from CoStar Group – which included market-level data from 391 metros between 2000 and 2024 – and another from the U.S. Census Bureau’s American Community Survey (ACS), which featured 307 metros between 2005 and 2023.
Some of the report’s key findings include:
- Source-of-income regulations increase rents between 5.2% and 5.3%, or about $876 to $1,104 annually per unit.
- Eviction laws increase rents between 5.9% and 6.3%, or about $1,092 to $1,224 annually per unit.
- Resident screening laws increase rents between 1.5% and 3.4%, or about $252 to $708 annually per unit.
“If we want rent regulations to align with affordability, we need to plainly recognize the tensions between them,” said Metrosight Founder and Economist Issi Romem, Ph.D. “It is striking that we found their cost has fallen hardest on lower-income renters and residents of small apartment buildings—the very people they’re meant to support.”
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