> When the maximum rent controlled rate increase is set above the market rate increases, it's not going to affect prices. In theory, if real estate was a perfe

> When the maximum rent controlled rate increase is set above the market rate increases, it's not going to affect prices. In theory, if real estate was a perfectly competitive market you'd be right. But by setting a standard well-known rent control rate, it sets a standard that landlords can follow. It allows landlords to act in concert and collude on rent increases without any direct communication between them.