Providence lawmakers are barreling toward one of the most aggressive housing experiments in Rhode Island history — and critics warn renters could end up paying the price.
The City Council is set to introduce a rent control ordinance this week that would cap annual rent increases at 4% for many apartments across the city, marking the first serious attempt to impose rent control anywhere in the state.
Under the 17-page proposal, landlords would be barred from raising rents beyond 4% in a single year unless they petition a newly created Rent Board for approval. That five-member board would have sweeping authority to review rent hikes, hear tenant complaints, roll back increases deemed unlawful, order refunds, and recommend fines for violations.
Mayor Brett Smiley has already said he plans to veto the ordinance if it passes as written — a move the Council could override only with 10 of its 15 members.
Supporters frame rent control as a quick fix for skyrocketing housing costs. But economists, housing providers, and even some tenant advocates warn the policy is a classic case of good intentions colliding with hard math.
The ordinance exempts newly built units for 15 years and owner-occupied buildings with three units or fewer, but that does little to calm concerns that the policy will chill investment, shrink rental supply, and ultimately drive rents higher for everyone else.
The Rhode Island Coalition of Housing Providers argues the city is treating a supply crisis with price caps instead of production. Their position is blunt: the only proven, sustainable way out of an affordability crunch is building more housing — not regulating it into scarcity.
Decades of data from cities that tried rent control tell a consistent story. When future rent growth is capped, the expected return on rental housing drops. Projects become harder to finance. Landlords convert apartments to condos, redevelop properties into exempt units, or stop building altogether.
San Francisco’s rent-control expansion in the 1990s is often cited as a warning sign. After the city broadened rent control to more small multifamily buildings, landlords responded by cutting the rental supply by roughly 15%, according to a landmark study. Fewer apartments didn’t lower rents — they pushed prices up in the uncontrolled market.
Maintenance also suffers. When rents can’t keep pace with rising costs — insurance, labor, utilities, taxes — landlords have fewer resources and incentives to reinvest. Over time, quality declines, especially in older buildings. The result is a two-tier system: long-term tenants benefit, while newcomers face fewer options and higher asking rents.
Mobility drops, too. Rent control “locks in” tenants, even when a unit no longer fits their job, family, or commute. In San Francisco, tenant mobility fell by about 20% after rent control expanded — a hidden cost that reduces turnover and worsens housing mismatches.
Perhaps most controversially, rent control isn’t means-tested. Benefits go to whoever holds the lease, not necessarily to low-income households. Over time, the winners are insiders who got in early. The losers are young renters, families trying to move, and workers relocating to the city.
Research from rent-regulated cities including New York shows another unintended consequence: spillover pricing. As demand shifts to unregulated units, rents there rise faster — sometimes 22% to 25% higher than they would have been without regulation.
Providence’s housing crisis is real. But critics argue it’s driven by scarcity, not price gouging. Capping rents doesn’t create a single new apartment — and history suggests it may actually reduce the number available.
The ordinance heads to committee Thursday, where public input will be heard. Whether the City Council presses forward — and whether it can override a mayoral veto — could determine whether Providence expands housing or experiments with it.
Like Newport Buzz? We depend on the generosity of readers like you who support us, to help with our mission to keep you informed and entertained with local, independent news and content. We truly appreciate your trust and support!
