In February, Boston Mayor Michelle Wu unveiled a rent control plan. Wu’s proposal quickly drew criticism. Real estate interests oppose the plan, while Leftists argue that it isn’t strong enough. This is shaping up to be a classic example of how the Left shifts the debate.
Wu’s proposal allows for rent increases of 6 percent plus any increase in the Consumer Price Index (CPI). It also exempts new construction for fifteen years. Wu has defended her plan as “balanced.”
Leftists may not get stronger rent control in the short-term. But their demands could easily shift the debate from rent control versus no rent control to how restrictive rent control will be in Boston. Leftists may reluctantly accept a compromise between their demands and the interests of landlords. But that compromise will represent a complete victory for the Leftists. Unless they frame the issue in moral terms, landlords and developers will be intellectually disarmed, and the Leftists will win.
To illustrate, at a City Council hearing on the proposal, one Leftist suggested that rents be capped at 5 percent, regardless of inflation. Unless housing producers challenge the moral premises underlying rent control, they will find themselves facing a choice between Wu’s cap of 6 percent plus the CPI or a 5 percent cap. If that happens, landlords and developers may gladly accept Wu’s plan. And in the process of compromising, they will have surrendered to the Leftists.
Currently, Boston has no rent control. Any form of rent control, no matter the amount of the cap, is a victory for the Leftists. In a few years, they’ll issue new demands and again shift the debate. Having previously compromised on the principle of property rights, housing producers will be defenseless. That previous compromise established the fact that they are willing to accept controls and restrictions. The only issue up for debate is the type and extent of those restrictions.
If landlords and developers want to retain their moral right to establish the terms and conditions of their rental properties, then they must reject rent control on principle. And that means shifting the debate to the moral principles involved.