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
As the old saw goes, a price is a signal wrapped in an incentive. People who previously had cheap rents under rent control now have an incentive to downsize to save money, which also frees up supply.
So rent control does things to both the supply side and the demand size.
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