Zack KanterVerified account

I don't understand rent control. If you limit someone's ability to set rent prices, doesn't that discourage people from renting out property? What happens if landlords decide to sell instead of settling for poor returns, and then there are way fewer rental units out there?

Price caps lower supply (rent control). Price floors lower demand (minimum wage). The benefits are first order, immediate, and visible. The greater drawbacks are second order, delayed, and less visible.

We’ve had rent control in Sweden since forever and I can let you know the result is huge waiting times (many years) to rent unless you go on the black market and pay way above “market” but also get no security. It also leads to less construction of thus purchase prices go way up.