Rent control doomed this mayor’s re-election campaign. He has no regrets
Providence Housing Fight Reshapes the Mayor’s Office
Goldlaner.com – Providence voters have delivered a decisive verdict in a mayoral primary shaped by one of the nation’s most contentious housing debates: whether limiting rent increases can protect tenants without worsening an already tight housing supply.
Brett Smiley, elected mayor in 2022 after promising to increase housing construction and move projects forward in Rhode Island’s capital, lost September’s Democratic primary to David Morales, a 27-year-old state representative and member of the Democratic Socialists of America. The result marked the first time in Providence history that an incumbent mayor was defeated in a primary.
Morales is strongly positioned for victory in the general election next month. His platform included a commitment to enact rent control within his first 100 days, making the issue central to the city’s political transition.
A veto with major political consequences
The dispute came to a head in April, when Smiley vetoed a rent-control measure approved by the Providence City Council. The proposal would have restricted annual rent increases to 4%, while creating exemptions intended to reduce the impact on some property owners and new construction.
Smiley argued that rent regulation offered a politically attractive answer to a difficult problem but would ultimately make housing harder to build. He declined to seek a compromise with the council on the legislation, believing Providence could lose development to nearby Rhode Island communities without similar rules.
“I believe it is a false promise,” he said in a phone interview earlier this month. “But it’s good, cheap, easy politics.”
His approach reflected a supply-focused strategy often identified with the Yes in My Backyard, or YIMBY, movement. Working with city and state officials, Smiley supported efforts to loosen restrictive zoning requirements and streamline the development process. Providence added more apartments during its latest fiscal year than in any year over the previous two decades, and 40% of those homes were affordable.
Yet the political appeal of new construction can be limited for tenants confronting immediate rent increases. Building homes can take years, while a cap on annual increases offers the prospect of near-term protection for people already living in the city.
Rent pressures in an old and growing city
Providence’s rental market has faced mounting strain. The city has attracted college students as well as higher-income arrivals from Boston, Connecticut and New York. At the same time, much of Providence’s housing stock is among the oldest in the country. Apartments that fall into disrepair or become unlivable further shrink the number of homes available to renters.
The city was ranked last year as the least affordable metro area for renters. Median rents have climbed 40% since 2020, intensifying frustration among residents who feel increasingly priced out of their own neighborhoods.
Housing construction has also been a long-running statewide problem. Rhode Island has trailed many other states in housing production since building peaked during the 1980s. Between 2008 and 2015, builders received fewer than 1,000 permits annually across the state.
Those conditions created fertile ground for Morales’ message that tenant stability deserves urgent action. He characterized Smiley’s veto as “absolutely shameful” and argued that Providence residents wanted leadership focused on their interests rather than those of major donors.
“I’ve been unapologetically supportive of capping rent hikes at 4% a year because I believe our neighbors deserve that basic stability,” Morales said in an interview.
The bill included provisions meant to address concerns from smaller landlords and developers. Owners who live in one of their rental properties would receive a partial exemption from the limits. Newly built apartments could be exempt for as long as 20 years, while existing apartments would not enter the rent-control system until five years after construction.
Morales has argued that these exceptions would preserve reasons for developers to keep building in Providence while tenants gain protection from sharp increases.
A broader argument over rent control
The Providence contest reflects a national divide among elected officials confronting housing affordability. Rent control remains politically popular in large cities including New York and Los Angeles, as well as in smaller communities such as Portland, Maine, and St. Paul, Minnesota. It has become especially compelling to renters who see market-rate construction as too slow to relieve their financial pressure.
But rent caps have a mixed record. They can curb costs for tenants in regulated homes, while potentially shifting higher prices toward renters outside regulated units. Critics also argue that strict regulations can reduce the willingness to build new housing, limiting future supply.
Providence’s proposal drew inspiration from policies in Portland and St. Paul, though their experiences illustrate why policymakers continue to disagree. Portland voters approved limits in 2020 that tied yearly rent increases to inflation. Construction has continued to rise there after the policy took effect, but the city’s mayor has raised concerns that rent rules have made it more difficult for landlords to maintain older apartments.
For Providence, the challenge will be balancing the immediate needs of renters with the long-term need for more homes. Morales’ expected arrival at City Hall suggests voters want a faster and more direct response to the affordability crisis. Smiley’s loss, meanwhile, underscores the political risk of asking residents under financial strain to wait for the benefits of a construction boom.
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