The practical result of rent control is the further enrichment of real estate developers and investors. It appears to be a populist focused measure and therefo

The practical result of rent control is the further enrichment of real estate developers and investors. It appears to be a populist focused measure and therefore wins support from certain political factions. Meanwhile it removes supply from the market and in a market where demand far exceeds supply - like the Bay Area - it drives up prices for new development. It's one of the more intriguing political coalitions out there. As housing prices increase, salaries have to increase in order to attract and retain talent. In the Bay Area, this represents a transfer of wealth from tech investors to real estate investors and developers. The generous valuations granted to tech companies by the private and public equity markets make this possible, for now.