Rockville City Councilmember Izola Shaw Issues A Statement on the July 21 Mayor and Council Meeting Regarding Rent Stabilization

Statement from Councilmember Izola Shaw

“Rockville renters are bearing the brunt of our housing crisis—a crisis that urgently needs action, not just encouragement. Last year, the Mayor and Council majority chose to address predatory rent hikes by "incentivizing" corporate landlords with city certificates and "gold stars" (November 18, 2024 Meeting) if and when they decide to follow the Voluntary Rent Guidelines, rather than enacting a rent stabilization policy. While I respect my colleagues’ intentions to promote good practices, I was deeply disappointed by their choice not to meaningfully protect renters.

Since last year’s decision, hundreds of residents have urged the Mayor and Council to consider rent stabilization. Councilmember Myles and I responded to these concerns at the recent July 21 meeting with a rent cap proposal, based on successful policies in Montgomery and Prince George’s Counties. It was disappointing that a majority decided not to consider this proposal, directed staff in advance of the July 21 meeting to share outdated and now inaccurate reports on rent stabilization with the public, and prohibited any further discussion on the matter.

Rent stabilization is now the only issue explicitly banned from open debate.

Some colleagues are concerned that rent stabilization could hinder new apartment construction, pointing to a decline in Montgomery County multifamily permits during the first three months of 2025. However, multifamily building construction is down nationwide—in jurisdictions with and without rent caps—primarily due to high interest rates, rising construction costs for materials, and overall economic uncertainty, as highlighted by regional developers themselves in their annual reports. Northern Virginia, for example, demonstrates a similar downturn to Montgomery County. I'm concerned that emphasizing this short-term, isolated data point—especially given that staff was directed to withhold current, unbiased rental market data from the public during the July 21 meeting—could distort a broader understanding of rent stabilization’s benefits.

Half of Rockville’s residents rent their homes. Most spend over 30% of their income on rent, and one in five spends more than half their paycheck just to stay housed. These burdens fall hardest on communities of color, seniors, immigrants, and people with disabilities. In 2023, renters reported increases from 6% to 40%; in 2024, that range climbed to 9% to 40%. Montgomery County calls rent hikes over 10% “constructive evictions”—but here in Rockville, double-digit hikes are becoming routine. Just in the last two weeks, 15 families have reached out to me, desperate for help after being hit with these massive increases.

Additionally, most Rockville renters are middle and lower-middle-income residents—teachers, nurses, law enforcement, emergency responders, federal workers, local government employees—who make too much for our affordable housing programs, but not enough to keep up with rising market rents. These are our neighbors and the backbone of our city.

We need every possible tool to confront our housing crisis. I’ve consistently supported a comprehensive housing plan—more supply, zoning updates, faster permits, increased subsidies, and more affordable units. However, these are long-term solutions that don't alleviate the immediate pressures renters are experiencing. Rent stabilization offers a practical solution for market-rate units: it establishes fair and predictable limits, shields renters from exorbitant rent increases, guarantees landlords a reasonable return on investment, and exempts new construction. Crucially, it provides residents with the stability they need. Rent stabilization also ensures fair landlord profits, with caps set well above average market rent increases and offering waiver options for necessary property improvements. In fact, the majority of landlords, those who operate responsibly, will not be affected at all—the aim is to regulate the bad actors within our market.

Hundreds of renters have shared what’s at stake: their homes, stability, and their children’s education, where parents don’t have to remove their kids from their classroom due to being priced out. As one renter said, “If it were your housing, what would you do?” It’s time to listen—and act. Rockville deserves better.”