Developers in some of the nation’s largest markets are still adding new units to the pipeline, in spite of fear rent regulation laws will only get tougher.

In spite of fears surrounding the expansion of rent control laws throughout the nation, developers in some of the biggest U.S. apartment markets haven’t pulled back on new projects.

“These laws alone probably won’t slow down new construction,” says John Sebree, senior vice president and national director of Marcus & Millichap’s national multi housing group, based in Chicago. “However, these new rent control laws will do absolutely nothing to resolve the shortage of housing.”

Developers also worry that rent control laws passed in 2019 are just the beginning—they expect stricter proposals to come. At the same time, proposals to make it possible to build more new housing continue to fail.

“Rent control still has the potential to slow building across California [and other rent control markets] in a big way over time,” says Greg Willett, chief economist for RealPage, Inc. “That’s especially true given uncertainty about future regulations.”