Economic Impact of Rent Control

Rent control policies limit the amount landlords can charge for housing, aiming to make living costs affordable. While they can help current tenants by stabilizing rent prices, they may also reduce the incentive for landlords to maintain or invest in rental properties, leading to a decline in housing quality and availability over time. Additionally, rent controls can discourage new construction, which can tighten the housing supply and eventually increase overall costs. The economic impact is thus a balance between protecting tenants and maintaining a healthy, dynamic housing market.