Greater Boston Chamber of Commerce CEO James Rooney is telling lawmakers to ditch rent control and restrictive zoning mandates that he says will price more people out of Massachusetts by hindering housing development.

Rooney laid out the Chamber’s annual business outlook Wednesday with a heavy focus on affordability, which he described as a key factor hampering the state’s competitiveness that is being exacerbated by “misguided” legislative priorities.

“The lack of affordability for families and businesses is holding back the success of people and our economy,” Rooney said. “An unpredictable federal government is creating significant challenges to local and state government budgets and uncertainty in the business community.

“Within our state, outdated and misguided policy proposals under consideration by policymakers and voters erode the very advantages contributing to the commonwealth’s success,” Rooney added.

He singled out rent control, the real estate transfer fee on high-end property sales, “aggressive” inclusionary zoning mandates that set aside a certain percentage of units in new residential development as affordable, and “overly burdensome local zoning rules” as proposals that will hinder housing production and drive up costs.

“Our region needs to continue to change its mindset regarding housing,” Rooney said. “We need to get out of the way and unleash the private market to build more housing of all types, not stifle it. … Restrictions and layers of red tape add costs, delay projects, keep cranes out of the sky and building trades workers sidelined.”

The Chamber boss added that policymakers “need to foster an environment where developers see our region as a place to build and grow, rather than a place to avoid in favor of other cities and states that welcome production and economic growth.”

Rooney said the state’s Affordable Homes Act — a $5.2 billion housing law signed by Gov. Maura Healey in August 2024 that aims to counter rising housing costs and bolster production through a series of policy changes — “was a good start” but other proposed changes are already giving real estate investors pause.

To put it bluntly, Rooney said, “Rent control is a terrible idea.”

A potential 2026 ballot question would cap annual rent increases for most housing units in Massachusetts to the Consumer Price Index or 5%, whichever is lower.

The state is “already seeing housing projects delayed because of hesitant investors,” in light of rent control potentially being on the fall ballot, Rooney said.

“It does not make financial sense to investors to build the amount of housing we need in Massachusetts under these circumstances,” he added.

Affordability has broader implications for the region’s business outlook and economic competitiveness, according to Rooney.

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He said “Massachusetts is increasingly perceived as a costly and complex environment for businesses” due to rising expenses and increased regulatory hurdles, “and we are already losing ground to regions that offer more favorable conditions.”

“Our competitor states are positioning themselves as business-friendly destinations, prioritizing jobs and economic growth,” Rooney said. “Through government fiscal discipline, lower taxes, targeted marketing campaigns, and investments in infrastructure, these states are proactive and effective.

“They count on our complacency to attract our residents and businesses. If we fail to act, we risk losing talent, businesses, investments, and ultimately our economic edge. We need to reduce barriers and create strategic pathways for growth.”