Rent control regulations can potentially impact multifamily property investment in several ways. Firstly, they can lead to a decrease in investment as they limit the amount of rent that can be charged, reducing potential returns. This was seen in the New York Metro area where there was a 9.2% year-over-year drop in multifamily investment following the implementation of new rent control regulations. Secondly, they can discourage new development as the potential for profit is reduced. Finally, they can lead to a deterioration in the quality of housing as landlords may be less inclined to maintain and improve properties if their income from them is restricted.
Real estate can be a great addition to an investment portfolio. But as with any investment, it has t...
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