No rent control = housing boom and lowered prices?

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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

19 Answers

Anonymous 0 Comments

From what I gather, landlords released property to the market that they were keeping vacant due to them not being economically viable under rent controls

Rents are actually up in actual pesos but adjusted for inflation are cheaper

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