What Rent Control ACTUALLY Does to Rent Prices

While public support for rent control is high due to rising rent prices, economic research indicates it's largely ineffective in the long term. Rent control can suppress rents for some units but often leads to decreased rental housing supply, higher rents for unregulated units, and reduced construction of new rental properties, ultimately potentially worsening affordability.

Rent Control Impact on Rent Prices

• 00:00:50 Rent control suppresses rent prices in regulated units, with studies showing an average 9% decrease. However, rents in non-regulated units tend to accelerate, potentially exceeding market rates due to decreased tenant mobility and landlords seeking to recoup potential losses.

Decreased Rental Housing Supply

• 00:04:24 Rent control negatively impacts the supply of rental housing, with two-thirds of studies showing a correlation to reduced residential construction. This is because it decreases landlord profits and makes the rental business riskier, leading some landlords to sell their properties, further decreasing the supply of rental units.

Economist Opposition to Rent Control

• 00:02:35 Over 80% of economists oppose rent control because of its negative long-term effects on rental housing supply and affordability. They believe that increasing the supply of rental units is the most effective solution to the problem of rental affordability.

Rent Control's Effect on Affordability

• 00:05:43 Rent control can worsen affordability issues in the long run due to decreased rental housing supply and reduced construction of new units. Increasing the rental housing supply is considered the best solution to improve long-term affordability.