Evidence-Based Decisions—Except on Rent Control?
DID YOU KNOW?
Approximately 93% of economists surveyed agreed that rent ceilings reduce the quantity and quality of available housing.
Only 6.5% disagreed.
Two decades later, another panel of leading economists overwhelmingly rejected the claim that rent control had increased the amount and quality of broadly affordable rental housing in New York and San Francisco.
WHY?
Rent caps restrict rental revenue while construction, maintenance, insurance, taxes and other costs continue to rise.
This can discourage new investment, reduce maintenance and cause existing homes to leave the rental market.
A subsequent study of San Francisco found that affected housing providers reduced rental supply by 15%, contributing to higher market rents over time.
THE BETTER DIRECTION FOR NOVA SCOTIA
Allow Nova Scotia’s temporary rent cap to expire as scheduled at the end of 2027.
Increase rental supply and provide targeted assistance directly to renters who need help.
Housing policy should remain evidence-based—even when the evidence is politically inconvenient.
Sources: Alston, Kearl and Vaughan, American Economic Review, 1992; University of Chicago Economic Experts Panel, 2012; Diamond, McQuade and Qian, American Economic Review, 2019.