Exacerbates Shortages:
Rent control policies reduce the number of new units built and limits the overall supply of rental housing in a community. In San Francisco, rent control reduced the supply of housing by 6% and was responsible for a more than 5% increase in rental prices.
Disproportionally Benefits Higher-Income Households:
Rent control and rent stabilization policies do a poor job at targeting beneficiaries, resulting in an inequitable distribution of benefits that hurts renters in need. In 2022, researchers found that tenants in St. Paul who gained the most from the recently implemented rent control policy had higher incomes, while those who lost the most had lower incomes.
Ultimately Drives Up Rents:
As rent control stifles new development and supply remains inadequate, renters are faced with fewer and more expensive housing options in communities of choice. Research suggests that rent control ordinances make rental units more expensive in the overall market rather than less.