Saw this post on Instagram (https://www.instagram.com/reel/DAjCAJYusg6/?igsh=djRsOGh3ZzhyY2Zr ) which claims that the removal of rent control in Buenos Aires led to an increase in available housing and a decrease in housing prices which seems counter-intuitive to me.
Is the increase in availability due to landlords raising the rent and forcing existing renters out ( thus more availability)? But how then are the prices of these places somehow lower?
What am I missing?
In: Economics
Another way to think about it: If a landlord knows that they cant raise rent over time, they will have new leases much higher
Also, renters with existing controlled rents wont move to new units when they might otherwise, because even when their current space is inadequate anymore, they enjoy the lower cost. If the renters will be subject to increasing rents overall, then there isn’t as a much a benefit in staying in their existing units, promoting more flow through the system, and freeing up cheaper units (smaller or in worse locations as those tenannts move up)
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