According to the BBJ at a recent Boston Multifamily Housing Summit famed real estate developer and CEO of The Hamilton Company, Mr. Harold Brown, fears a potential return to the nightmare of rent control.

Brown notes that in his opinion there is a limit on how many “rich people” are around and can afford to live with the rising cost of renting apartments in Boston. Coupled with the construction that is occurring across the city Brown thinks that there is a good chance these apartments sit vacant as potential tenants move back home or double up in cheaper housing options.

Mr. Brown also realize that there is not strong support on Beacon Hill behind rent control as it would stifle the semi-boom of development that is occurring at the moment.

Taking a step back to analyze this: Brown’s fears are troublesome. Few people have been through more in the real estate development world in and around Boston than Harold. Thus, if he is fearing a return to rent control landlords better pay attention. How awful would it be if these giant new apartment complexes sit half empty with low vacancy rates for a few years and then the developers try to turn them into condos . . . . would it help as there is a dearth of inventory for sale throughout the city or add to mediocre sales figures by flooding the market and driving down prices?

I’m a firm believer that many younger professionals who would have been first time home buyers a decade or even 6 years ago are scared to purchase a property with the overall media analysis that the housing market is in a terrible slump. The voices of real estate professionals such as myself that scream about incredible interest rates and the importance of building equity for ones future seem to land on deaf ears. Because of this I am very bullish on the rental market for the foreseeable future.

However, is there enough renters to fill a gluttony of “luxury” style mid to high rise developments that charge $1200, $1300, even $1400 per bedroom? My gut tells me no – despite that collegiate rentals for new construction and new renovations move very quickly. The majority of the renting clientele who are past their academic days and supporting themselves on their own wallet tend to be looking for “deals” with in the smaller landlords who own and manage their own portfolios.

In short, it is of my opinion that you need to have a balanced approach to development and housing – never weighted in a single direction. Especially in a city as diverse and transitory as Boston is. As mentioned before I wouldn’t want to be the last developer in the ground on some of these new constructions projects . . . you never want to be last to the party. Better to be first in business.

So could we be headed back to an environment where rent control tries to resurface? Let me know what your thoughts are.

Filed under: Boston Developments, Boston Landlord Tips and Advice, Boston real estate bubble, Boston Real Estate Editorial, Boston Rental Resources, Landlord Tips, Luxury apartments