Housing Expert Warns Against Rent Control Without Supply as Construction Starts Decline 27%

Armand Domalewski, co-founder of YIMBY Democrats for America and a prominent housing activist, recently issued a stark warning regarding rent control policies. He asserted that implementing rent control without simultaneously increasing housing supply would lead to severe consequences. > "If all you did was make it illegal to raise rent but didn’t build any new housing, a lot more people would be homeless and no one would be able to ever move anywhere," Domalewski stated on social media.

Domalewski emphasized that while "smart rent controls can be a good stabilizing policy," they cannot resolve a fundamental shortage without new construction. As a leading voice in the "Yes In My Backyard" (YIMBY) movement, he advocates for policies that remove regulatory barriers to building more homes. His perspective aligns with the YIMBY philosophy that increased supply is the primary solution to housing affordability crises.

Economists and housing experts frequently debate the efficacy of rent control, with many arguing that strict regulations can disincentivize new development and lead to deferred maintenance of existing units. While proponents highlight its role in preventing displacement and stabilizing rents, critics contend that it often exacerbates housing shortages in the long run. A 2021 Columbia Business School study noted benefits in housing stability for low-income households, but acknowledged aggregate distortions in housing markets.

The discussion comes as the U.S. housing market experiences complex trends. In 2024, the nation saw a 50-year high in new apartment completions, with nearly 592,000 units finished. However, this surge in supply has been met with a steep slowdown in construction starts, which declined by 27% in 2024 compared to the previous year, and 37% from a 2022 peak, according to a U.S. Census Bureau survey.

Domalewski has previously pointed out that "a lot of blue-government areas and cities have extremely restrictive zoning, impact fees and other rules that make it very difficult to build housing." These regulatory hurdles, combined with factors like higher interest rates and labor shortages, are cited as significant impediments to addressing the estimated national housing shortage, which experts place between 1.5 million to 5.5 million units.

The activist's warning underscores the delicate balance required in housing policy, suggesting that without a robust commitment to increasing supply, rent control measures risk unintended negative consequences. The recent decline in construction starts, despite a period of high completions, suggests that the challenge of balancing affordability with adequate housing availability remains a critical issue for policymakers nationwide.