I don't think the "econ 101" model here actually has much to say about how market rates increase the productivity of renters. It's true that they will probably

I don't think the "econ 101" model here actually has much to say about how market rates increase the productivity of renters. It's true that they will probably have to pay more rent, but it's not clear to me they will do so by being more productive. It could be they do so by just buying less from their local corner store, going out to drink less at the local bar, and skipping out on fancy dinners.The only thing the econ 101 model is says is that the landlords will keep commanding higher prices as long as demand outrstrips supply. And the price of housing near your job and friends is very inelastic, building up in a limited landmass is expensive to do right, so supply is going to have a hard time keeping up. I guess the case in the negative is my experience, where every largest metro area I have been in has implemented rent control, often after large rent shocks.