Rent control was in effect in Cambridge when I first moved to Boston in 1994. I never had the luxury to live in one of these low priced units, but rents sure seemed reasonable compared to 2012. I paid $575/month for a 500sf studio in Brighton in 1994. By the time I left that apartment ~2000, the price had increased to $1100/month. Wow! Imagine how prices for property as an investment changed in Cambridge since they lifted rent controls in 1995.
According to an article by Peter Tatian of the Atlantic Cities:<More recently, aÂ MIT studyÂ of the 1995 repeal of rent control in Cambridge, Massachusetts, found that investment in housing increased after rent control ended, leading to "major gains in housing quality." AÂ National Bureau of Economic Research paperÂ also examined the Cambridge experience and concluded that â€œelimination of rent control added about $1.8 billion to the value of Cambridgeâ€™s housing stock between 1994 and 2004, equal to nearly a quarter of total Cambridge residential price appreciation in this period.â€ These findings have been used to argue for removal of rent control in New York and other places.>Prices for 2 and 3-family properties in Cambridge and the Boston metro area seemed to jump from 1999 to 2000. Rents also started their ascent from the mid-1990s and have trended higher through the financial crisis which started in 2007.Â Here is the article for your convenience. It's a good read!http://www.theatlanticcities.com/housing/2013/01/beware-comeback-rent-control/4291/
Willard Cunningham, Broker/Principal
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