AOBA, GCAAR Issue Statement Regarding the Impact of Rent Control on County Housing Production
ROCKVILLE, Md. – The Apartment and Office Building Association of Metropolitan Washington (AOBA) and the Greater Capital Area Association of REALTORS® (GCAAR) have released the following statement:
Today’s press conference by Montgomery County was marked by misinformation regarding the impact of rent control on housing production.
In the five quarters since rent control was fully implemented, multifamily permits have collapsed. Only 610 units have been permitted, none of which are market-rate rentals. A significant portion, 518 units, comprises two projects subsidized by public funds or 15-year tax abatement agreements.
The County pointed to many of the national trends affecting housing production. This is simply not reflected in the data from neighboring jurisdictions. According to the US Census Building Permit Survey, between October 1, 2024 and August 31, 2025, Montgomery County permitted 54 units. During the same time, Fairfax County, VA permitted 2,022; Washington, DC permitted 1,764; Arlington County, VA permitted 1,508; and Anne Arundel and Howard County, MD both permitted over 525 units.
Counting stalled projects in the development pipeline yet to receive building permits as evidence of sustained development is not a reliable assumption, as there is no guarantee developers won’t end up pulling the plug on projects that predate the implementation of rent control. In their quarterly survey, the National Multifamily Housing Council found that 76% of housing providers surveyed will not operate in or plan to cut back their investment in markets with rent control.
This permitting collapse represents a new status quo of the Council’s creation. No amount of scapegoating or shaming of developers will change the complex regulatory environment created by the passage of rent control, increases in real estate taxes and fees and other burdensome legislative mandates. Study, after study, after study, reaffirms the same conclusion: the most effective way to drive down rental costs is supply. Incentivizing growth and housing production is the path toward sustainable economic benefits for tenants and housing providers.
Meanwhile, properties that remain on the troubled and at-risk properties list face immense financial challenges. The County’s rent stabilization law worsens this situation by preventing those properties from increasing rents at all, making it even more difficult to address their capital needs.
The County does not have the funding to produce enough to subsidize the housing needed to meet the County’s immense demand, as evidenced by recent property tax increase proposals. Until a holistic review of housing policy is conducted and reforms enacted, the Council should expect this status quo to continue.
* * * * *
About AOBA
Founded in 1974, the Apartment and Office Building Association of Metropolitan Washington is the leading membership organization representing commercial office buildings and multifamily residential real estate in the Washington metropolitan area. AOBA’s members collectively own and manage a portfolio of more than 185 million square feet of commercial office space and 400,000 residential units in Washington, DC, Maryland, and Virginia. AOBA is the local federated chapter of the Building Owners and Managers Association (BOMA) International and the National Apartment Association (NAA).
About GCAAR
The Greater Capital Area Association of REALTORS®, one of the largest local REALTOR® associations in the U.S., is the voice for REALTORS® in Washington, D.C. and Montgomery County, Maryland. Representing more than 12,000 real estate professionals in the greater capital area, GCAAR provides services vital to its members' daily business needs and works with lawmakers to ensure public policy that encourages homeownership and supports the real estate industry. For more information, visit www.GCAAR.com