
State and Local Issues | |
Moving Away From Rent Controls |
After Cambridge, Mass., lifted rent controls on apartments in 1995, the city enjoyed sizable and sustained economic growth. Thousands of wealthier tenants moved into the city -- sparking a construction boom and a renaissance in new restaurants and retail stores, while generating more tax dollars for city coffers. Average rents went from $500 a month in 1994 under controls to $1,050 in fiscal 1998. Over the same period, building permits rose from 1,488 to 2,100. New housing and construction increased by 50 percent -- with tax revenue from construction permits alone rising almost threefold.
In the debate on lifting controls in Cambridge, a compromise was reached that protected low-income families from eviction for up to two years. As it turned out, only 9.4 percent of all tenants were poor enough to qualify. Source: Judith Havemann, "Mass. City Gets a New Lease on Life," Washington Post, September 19, 1998. |
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