Return of Rent Control: New Research Shows Benefit of Decades-Old Affordable Housing Approach
The new research debunks conventional economic wisdom, finding evidence that rent control does not lead to an overall decline in the quantity of housing. The research also finds that the overall positive impact of rent control – reducing inequality and providing a source of stability for households who face a decline in income – more than compensates for any loss in market efficiency – due to higher housing and labor market distortions.