As housing affordability concerns grow in Pennsylvania, House Bill 914 has been introduced as a potential solution. Supported by Democratic lawmakers and introduced by Rep. Jim Prokopiak, the bill aims to curb annual rent increases and place new limits on landlords. However, critics argue that this approach could worsen the housing crisis instead of resolving it. Here’s a breakdown of why HB 914 may hurt landlords, tenants, and the long-term future of housing in the state.
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Rent Caps Ignore Real Costs Faced by Landlords
House Bill 914 proposes to cap rent increases based on the Consumer Price Index plus 3 percent, with a maximum of 6 percent annually and a hard cap of 10 percent per lease renewal. While this may sound fair, it does not consider the growing operational costs landlords face. Insurance premiums, property taxes, utility costs, and building maintenance have all risen significantly. Landlords needing to raise rents to cover these expenses must apply to a magisterial court for permission, creating delays and uncertainty.
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Smaller Landlords Could Be Driven Out
Many small landlords operate on thin margins. For them, the added legal steps and strict limits on rent increases could make rental ownership unprofitable. If they leave the market, the result will be fewer rental units available. This trend has been observed in cities with rent control, where small property owners sell off or withdraw from the rental market, reducing housing options for tenants.
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Lessons from Other Cities Show Negative Outcomes
Examples from other states show what can happen when rent control is introduced without addressing housing supply. In cities like San Francisco and New York, rent-controlled properties often suffer from neglect and underinvestment. Landlords faced with profit restrictions reduce maintenance spending, leading to declining housing quality. These areas have also seen housing supply stagnate as new development slows and property owners hold on to units longer, reducing availability for others.
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Rent Control Can Trap Tenants in Poor Conditions
Although rent control may provide short-term relief for some tenants, it can also trap them in deteriorating units. With landlords reluctant to invest in repairs under capped revenue, tenants often end up living in poorly maintained homes. Additionally, rent control can discourage mobility, as tenants fear losing their current rate and are less likely to move, leading to inefficiencies in the housing market.
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Pennsylvania Housing Finance Agency Faces a Heavy Load
Under HB 914, the Pennsylvania Housing Finance Agency would be responsible for several critical functions, including managing exemption processes, adjusting rent caps for inflation, reviewing landlord petitions for fair returns, and creating enforcement rules. This expanded role comes without clear funding or timelines. Until the agency completes its rulemaking process, rent control provisions cannot be enforced, leaving landlords and tenants without clear guidance.
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The Real Problem Is Lack of Housing Supply
Experts widely agree that the main driver of housing unaffordability is a supply shortage. Pennsylvania does not have enough affordable rental units to meet growing demand. Instead of focusing on expanding housing options, HB 914 concentrates on regulating existing units. Without increasing the total housing stock, rent control alone cannot provide a sustainable solution.
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Missed Opportunity for Structural Reforms
Rather than introducing restrictive rent policies, lawmakers could support reforms that address the root causes of housing scarcity. Easing zoning laws, encouraging public-private partnerships, and streamlining building permits are all strategies with proven success in boosting housing development. Unfortunately, HB 914 does not include these types of forward-looking solutions. To truly solve Pennsylvania’s housing challenges, policymakers must prioritize growth. That means making it easier and more appealing to build new homes, especially affordable units. Rent control may appear to offer a quick fix, but in reality, it only restricts what already exists without improving conditions for the future.
