For NYC, that's a myth. There are two programs: "rent control" - grandfathered in old program that affects a very, very small number of apartments, not enough

For NYC, that's a myth. There are two programs: "rent control" - grandfathered in old program that affects a very, very small number of apartments, not enough to make any market price difference, except for the lucky few who happen to have these "rent stabilization" - a huge proportion of apartments are affected by this program, but it only applies to buildings built before 1970something, so it obviously can't affect new construction incentives. Even if it did, it's so full of loopholes I don't see it affecting the market prices. Outside of lower Manhattan, rent stabilized apartments often have official maximum prices well above the current rent. The difference is explained by a legal fiction called "preferential rent" ie, the landlord is giving the tenant a temporary discount and reserves the right to raise up to the maximum legal rent at any time. So, no, in NYC, rent regulations aren't significantly contributing to a housing shortage. The main obstacle to building more housing, is building more housing. Duh.