Opinion editor's note: Editorials represent the opinions of the Star Tribune Editorial Board, which operates independently from the newsroom.
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Last week, a working group of Minneapolis landlords and tenants offered two plans for city leaders to consider. The first, favored by about half of the 25-member group, should be a non-starter. It would misguidedly limit rent increases in Minneapolis to 3% per year and, in the long term, do more to suppress affordable housing than expand it.
Mayor Jacob Frey rightly says he would veto that plan if it came across his desk. He told an editorial writer that he has not reviewed nor analyzed the second plan and is reserving judgment until he does.
Frey said that rent-control policies can lead a landlord who must operate at a loss to sell a property or fail to take proper care of the units.
A spokesperson for the mayor said that though he is generally opposed to rent control, he is open to areas of compromise — especially around rent gouging intended to remove someone from their home.
The second plan from the Housing/Rent Stabilization Work Group might have more traction. It would cap rent hikes at 5% to 7% annually and allow for greater increases based on inflation and other exceptions to give landlords more flexibility.
The Star Tribune Editorial Board has previously argued against rent control, arguing that it's often counterproductive. Most economists agree that it does little to help renters over time, can hinder the amount of housing created and discourage investment in both new and existing rental properties. And some local studies have found that the Twin Cities rental market does not experience particularly excessive annual rent hikes.
