(The Center Square) – A proposed Illinois bill, the “Let the People Lift the Ban Act,” SB2884, would let local voters approve rent control, drawing sharp debate between tenant advocates and landlords over its potential impact on housing and the economy.
Supporters of the bill say it empowers municipalities to protect tenants from soaring rents and gives residents a voice in shaping housing policy. Critics, including state Sen. Andrew Chesney, R-Freeport, argue rent control discourages investment in rental properties and may ultimately worsen housing affordability.
“If rent control is implemented in any town or in the state, it will automatically reduce the value of everybody’s rental properties,” said Chesney. “You can’t have the government entering into private industry and telling somebody what they can charge. That discourages investment and, ironically, encourages higher overall rents over time.”
Chesney, who opposes the bill, cited examples from cities such as New York and San Francisco, where rent stabilization policies have, in his view, led to higher costs and strained housing markets.
“What you find is these landlords will take the maximum allowed each and every year by state law,” he said. “Which always leads to higher overall rents and overall costs.”
The Illinois Rental Property Owners Association echoed that concern, noting that limiting rent revenue inherently reduces property value and discourages maintenance and new construction.
“There is a short-term win for tenants who have their rent capped, but over the long term there will be fewer housing options available to new renters and the quality of existing housing will decline,” Paul Arena, Illinois Rental Property Owners Association director of legislative affairs, told TCS.
The association recommended the state focus on incentives to increase housing supply rather than imposing rent limits.
Chesney explained such a patchwork of rent control policies could discourage private investment in rental properties, ultimately harming the market.
“They’re pretty much trying to make it a local control issue, and of course they always start at local control and then they want to go beyond local control,” Chesney. “The problem is 10 different sets of rules, with different nuances throughout the entire state, that just simply doesn’t work.”
Proponents of SB 2884 argue letting local voters decide could address rising rents in high-cost areas without imposing a statewide mandate. The bill would allow municipalities to hold referendums on rent control measures, leaving the decision to residents rather than legislators.
The bill’s sponsor state Sen. Graciela Guzman, D-Chicago, did not immediately respond to The Center Square’s request for comment.
Chesney emphasized that broader economic factors drive housing affordability challenges in Illinois.
“Wage growth consistently falls behind national averages, and population loss compounds the problem,” he said. “Throwing money at the issue won’t solve it. The real solution is lowering barriers to home ownership.”
He also criticized targeted state incentives like enterprise zones and Tax Increment Financing districts, which he said favor politically connected developers.
“Rather than picking winners and losers, we should lower the overall tax burden so everybody can compete on a level playing field,” Chesney said.
Assembly committee hearings are expected in the coming months.