There is ample research supporting the notion that rent control increases prices and gentrifies neighborhoods [1][2][3]... The reason I believe this is economi

There is ample research supporting the notion that rent control increases prices and gentrifies neighborhoods [1][2][3]... The reason I believe this is economics 101. People want simple solutions to difficult problems. If prices are too high, we create laws that keep them low (so simple!). Problem is that supply is finite, even with new units being constructed cities have been unable to keep up with the influx of new residents. In many cases this is due to other similar suffocating regulations around building height, density, inability to pay out current residents for new construction etc. When supply is sparse and prices are often 50% less than market rate for long term renters, you increase their incentive to stay. That further restricts supply and prices go up for anyone not under contract. If you have an alternative theory of how this would work, I'm curious about it. What are the dynamics, beyond "prices are cheaper"? How does rent control reduce or solve a housing crisis? >And if it does not increase supply of new construction then it is zero sum gain. That's a hard thing to prove but I'd wager that isn't the case. Playing forward the rent control dynamic, it's likely that landlords could extract more money per unit on average than they would have in a less supply restricted market. The housing market is far from perfectly competitive without rent control. Landlords have many tools at their disposal to jack up prices beyond what the fair market value is with and without rent control. If the turnover rate is lower, those tools become easier to use. There are fewer comps and almost zero competition. That leaves a wider lane for price gouging on everything from rent to parking to laundry. [1] https://www.brookings.edu/research/what-does-economic-evidence-tell-us-about-the-effects-of-rent-control/ https://www.brookings.edu/research/what-does-economic-eviden... [2] http://freakonomics.com/podcast/rent-control/ http://freakonomics.com/podcast/rent-control/ [3] https://www.city-journal.org/html/does-rent-control-help-poor-12772.html https://www.city-journal.org/html/does-rent-control-help-poo...