Battle Over Controlling Providence Rents Is Coming to a Head

Battle Over Controlling Providence Rents Is Coming to a Head

Two weeks ago, the Providence Foundation, an organization dominated by developers, landlords, colleges, and architects, rolled out a study in opposition to the city’s worst-kept secret — upcoming rent control legislation. 

The progressive members of the Providence City Council, led by Council President Rachel Miller, will be introducing a city ordinance addressing the increasing cost of renting in the city.

Supporters of the legislation call the effort “rent stabilization,” and opponents call it “rent control.”

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A press conference is scheduled for Tuesday to formally introduce the plan.

 

Developer Commission a Report By RIPEC

The Rhode Island Public Expenditure Council (RIPEC) unveiled the report, paid for by the Providence Foundation; neither RIPEC nor the Foundation would disclose how much the payment was for the study.

“We will not be disclosing the terms of our engagement with the Providence Foundation with respect to this report," wrote Michael DiBiase, President and CEO of RIPEC in an email to GoLocal.

The study, which mirrors other developer-funded studies in other cities prepared during clashes over the issue, claims that rent control legislation is not effective, hard to administer, and has a chilling effect on the development of new supply.

“We found that, while rent control carries serious negative consequences for the housing market, there are alternative evidence-based policies that could be implemented to address the city’s housing needs,” said DiBiase in releasing the report. “Increasing housing supply and implementing direct, means-tested financial assistance to renters have been successful in communities across the country. The more options renters have, the more rents will stabilize.” 

Beyond the developers, the Rhode Island Association of Realtors has voiced strong concerns.

Advocates for rent control in Providence, like Miller, undermined their own narrative with a massive tax increase in this past budget, which hit landlords the hardest. Those property tax increases were then passed directly to the renter.

 

Mayoral Politics

Add in more politics to the debate over rent control.

Providence Mayor Brett Smiley, who has close ties to the development community, opposes rent control, and his announced opponent, State Representative David Morales, is a strong advocate for legislation to control rents.

Morales’ Instagram page — complete with 13,000 followers — consistently focuses on the unaffordability of housing in Providence and Smiley’s ties to developers. Smiley has 10,000 Instagram followers.

 

Good News, Bad News

At a macro level, Providence got good news as a 2026 hot spot, and the overall housing market got some bad news. Both trends may further impact housing prices.

First, the good news, bad news. As GoLocal reported last week, Zillow ranks Providence as the 4th hottest real estate market in America.

“Zillow predicts Hartford, Buffalo, New York City, Providence, and San Jose will be the hottest housing markets of 2026. In these metros, Zillow expects few price cuts, fast-moving listings and strong price growth,” said the company.

On Friday, Bloomberg reported that the housing market nationwide is facing significant challenges.

“The American housing market got a little worse this month despite some good news on the mortgage rate front, as confidence among homebuilders unexpectedly fell because of costly sales incentives. An index of market conditions from the National Association of Home Builders and Wells Fargo decreased 2 points to 37 in January, its first decline since August. That fell short of the median estimate of economists surveyed by Bloomberg. A value below 50 means more builders see conditions as poor than good,” according to Bloomberg.

“That downbeat mood puts a damper on momentum built in recent weeks as mortgage rates slid to one of the lowest levels in years and home price growth slowed. Sales of previously owned homes in December reached their strongest pace in two years, and new-home sales also rose to 2023 levels over the past few months,” added Bloomberg.

“But despite some improvement in affordability, prices are still high overall and mortgage rates remain double their 2021 levels. That’s forced contractors to cut prices and offer those pricey sweeteners, often by buying down customers’ mortgage rates,” wrote Bloomberg.

Increased cost of homes in Providence and less new construction increases the number of renters.