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Rent control can mean many different things. Different rent control schemes are implemented in different cities. But generally, any rent control scheme that red
by nearbuy 5y ago
Rent control can mean many different things. Different rent control schemes are implemented in different cities. But generally, any rent control scheme that reduces rental prices across the board is going to reduce new construction. I think this is pretty uncontroversial among economists.
I think your logic is flawed here.
1. There's no reason why making landlords earn less money would make them want to invest in real estate more. If you have $1 million to invest, you'll try to choose the best investment available to you. It doesn't make a difference if your current property is doing well or badly.
2. If landlords make less money, they should have less capital.
3. Even assuming your premise was correct and landlords who make more money from their property want to invest in new properties less, it wouldn't matter. As long as building new units is a good investment, someone else would do it.