Wednesday, Nov. 27, 2024
Can rent control have adverse effects on housing affordability?
While rent control makes targeted housing more affordable for recipients by capping rent hikes, it has in some cases made housing more expensive overall.
A meta-analysis of 112 empirical studies on the effects of rent control found that the policy can financially discourage developers from building new housing while encouraging landlords to convert their rentals into homes. Combined with rent-controlled units being taken off the market for long periods of time by tenants unwilling to leave, housing supply is artificially driven down while housing demand is driven up. This results in more expensive housing among uncontrolled units.
Other housing affordability policies have better track records. Among the most impactful is inclusive zoning reform that allows the construction of multifamily dwellings in more areas and on more types of land.
Public housing initiatives have also been highly successful in Europe, but suffer from underfunding and stigma in the U.S.
This fact brief is responsive to conversations such as this one.
Sources
- Journal of Housing Economics Rent control effects through the lens of empirical research: An almost complete review of the literature
- Network for Public Health Law Policy Approaches for Improving Housing Affordability and Availability
About fact briefs
Fact briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact briefs are written and published by Gigafact contributor publications.
See all fact briefs
EconoFact is a non-partisan publication designed to bring key facts and incisive analysis to the national debate on economic and social policies. Launched in January 2017, it is written by leading academic economists from across the country who belong to the EconoFact Network. It is published by the Edward R. Murrow Center for a Digital World at The Fletcher School at Tufts University.
Learn MoreLatest Fact Briefs
Would stopping government overspending ‘end’ post-COVID inflation?
Monday, Feb. 3, 2025
Has the Pentagon failed its 7th audit in a row?
Friday, Dec. 20, 2024
Does most US aid to Ukraine go to US companies and workers?
Friday, Dec. 6, 2024