> Because rent has a tendency to always increase, as supply is necessarily limited. Even the very highest density cities like Hong Kong have extraordinarily hig

> Because rent has a tendency to always increase, as supply is necessarily limited. Even the very highest density cities like Hong Kong have extraordinarily high rents. Hong Kong tightly controls land - only something like 25% is developed. As for rent always increasing, we’ve seen rents fall in major cities during the last year as demand plummeted relative to supply. We need to build more housing - rent control, as in a hard price ceiling, tends to disincentivize doing that, while also tending to decrease the quality of existing housing if rents are set too low.