Rent controls do far more harm than good, comprehensive review finds
“Rent control effectively reduces rents in the controlled sector, but does it a high price. Tenants occupying the rent-controlled dwellings benefit the most, at least in the short run, while newcomers lose from rent control. In the long run, rent control can undermine the rental sector forcing landlords to convert their dwellings and tenants to become homeowners.” … Dr Konstantin A. Kholodilin, paper author
The overview highlights the academic consensus on harmful consequences.
- Most studies (56 out of 65) find that rent controls succeed in lowering rents for controlled units, as intended.
- However, 14 out of 17 studies found that rent control leads to higher rents in the uncontrolled sector.
- 12 out of 16 studies found negative effects on housing supply, while 11 out of 16 studies found negative impacts on new construction.
- 15 out of 20 studies found rent control leads to reduced housing quality and maintenance.
- 25 out of 26 studies found rent control reduces residential mobility.
- All 14 studies examining the issue found rent control leads to misallocation of housing.
Download full report: Rent Control: Does it work?