The Massachusetts Supreme Judicial Court on Tuesday invalidated a statewide rent-control ballot measure, halting an effort to repeal the state’s longstanding ban on rent regulation. The ruling prevents the measure, which would have allowed voters to decide on instituting rent control statewide in the November election, from appearing on the ballot.

The proposal, backed by tenant advocates, sought to cap annual rent increases at the rate of inflation with a maximum limit of 5%, aiming to address Massachusetts’s high housing costs. Supporters argued the measure was necessary to rein in rapidly rising rents and reduce evictions, while including exemptions for small landlords and buildings less than a decade old. Opponents, including Democratic Governor Maura Healey, contended that such restrictions could deter developers and worsen the state’s housing shortage.

The court’s decision centered on a provision exempting units in religious facilities, which the judges ruled could not be part of a ballot measure under the state constitution’s prohibition on election-related initiatives involving religion. As a result, proponents are unable to revise the language in time for the upcoming election.

The lawsuit challenging the ballot measure was filed by four landlords and supported by Housing for Massachusetts, a coalition consisting largely of real estate owners and developers opposed to rent control. Tamara Small, CEO of NAIOP Massachusetts, a commercial real estate trade group and member of the coalition, described the initiative as potentially “catastrophic” for the housing market.

Massachusetts has seen significant debate within the state’s Democratic leadership over rent control, reflecting broader national discussions on how to address escalating housing costs. The average monthly rent for a two-bedroom apartment in the state is approximately $2,580, about 44% higher than the national average, according to Zillow data.

In other parts of the country, efforts to regulate rents have intensified. For example, New York City’s mayor has proposed a rent freeze on regulated units, and Los Angeles recently enacted stricter rent controls for the first time in decades. However, critics point to evidence from places like St. Paul, Minnesota, where a 2022 rent-control ordinance correlated with a decline in new housing construction, prompting revisions to the policy.

Prior to the court’s ruling, supporters of the ballot measure indicated they were exploring a compromise that would allow municipalities to adopt local rent limits, less comprehensive than the original statewide proposal, in exchange for withdrawing the ballot initiative. That approach had garnered support from officials including Boston Mayor Michelle Wu, who emphasized the urgency of addressing housing affordability.

Governor Healey, opposed to the ballot measure, reiterated her focus on expanding housing supply as the primary solution to rising costs. Meanwhile, the court’s decision leaves the state’s three-decade ban on rent control intact, a stance previously reinforced by the Democratic-controlled legislature’s reluctance to alter current laws.