As we all know, Oregon is the first all rent control state.
This is “despite decades of evidence showing rent control exacerbates housing shortages, a reality recognized by economists across the political spectrum.” (Washington Examiner 12/5/2025)
Jason Furman, a onetime chairman of former President Barrack Obama’s Council of Economic Advisers, emphasizes that “rent control has been about as disgraced as any economic policy.”
Swedish social democratic economist Assar Lindbeck famously said, “Rent control appears to be the most efficient technique presently known to destroy a city except for bombing.”
Sadly, a new generation of young mayors, city counselors, supervisors, et.al are coming to power across the nation that are wholly ignorant of this.
The most conspicuous example of this is Zohran Kwame Mamdani, 34 a state assemblyman and card carrying member of the Democratic Socialists of America, now Mayor elect of NYC.
The mayor wants to further tighten rent controls in a city already groaning under this burden with some of the nation’s least affordable housing.
Mamdani’s policies will only exacerbate this. In 4 years, NYC will likely be poorer, dirtier, and more crime ridden.
What then? Well, with insurance and other related costs going up by more than 25% annually between 2019 and 2023 about half of affordable housing buildings are not “collecting enough rent to pay their bills.” (WSJ 11/30/25)
As a landlord, if you can’t raise rents enough to cover your bills, you will either default on your mortgage and give the keys back to the lender, go to government for a bailout, sell your properties at a steep discount, or keep bleeding cash.
In 2023 the FDIC unloaded Signature Bank’s portfolio of rent controlled NYC properties at 40-50% discounts.
None of this is likely to catalyze new construction which is the only viable way to address the housing affordability issue long-term.
Now these dystopian policies are coming to a town near you with the election of socialist branded candidate Katie Wilson as Seattle’s new mayor.
This is someone with no elected experience, no money, and no business acumen. Prior to the election, at age 43, she was still receiving financial support from her parents. However, Ms. Wilson was pleased to announce that her higher salary as mayor should free her from dependance on parental support.
Her policies are strongly anti-business, pro tax and pro rent control. Her anti-policing rhetoric is already negatively affecting investor confidence and leasing rates in Seattle.
An antibusiness climate of higher taxes and heavier regulations is in the offing.
Wilson’s victory will reverberate beyond Seattle. The Portland business community is already bracing for impact.
Landlords are jittery, anticipating more tax hikes for the wealthy, expanded government involvement in housing and greater tenant protections.
In an environment where office vacancy rates already exceed 30%, you must ask how long can this last?
With marque office buildings crossing the block at deep discounts, not much longer I’d say.
Years ago, we wrote a blog entitled, “You Can Run But You Can’t Hide.” It’s still one of our most popular.
We were prescient in predicting the steady erosion of landlord rights in favor of tenants and the negative impact this would have on Portland property values.
We advised using DSTs as a vehicle to escape this to more capital friendly environments, principally red states.
Sadly, this has come to pass, and landlords are left with even fewer attractive local options and properties that are worth much less.
The Barbarians are at the gates. If they don’t want your blood yet, they certainly want your money and property.
How much longer will you wait? With the rise of Mamdani style socialists across the urban landscape the talk in New York steakhouses is about having the Gulfstream fueled and waiting on the airstrip.
If you don’t own a Gulfstream, I suggest you have your bags packed, a full tank of gas in the car and a for sale sign out front.
