What are the effects of rent control, both good and bad?
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In an efficient free market, increasing demand should result in increasing supply. For many reasons, very often government initiated at the behest of voters, the real estate market is not efficient and supply does not keep up with demand. Rents go up and Rent Control become yet an additional government interference with the market. Yet, is it really feasible, in a modern democracy to let the real estate run rampant if a significant number of people who have homes are fearful of losing them? People who live in the homes of others, who want to relocate to urban areas or the outright “ unhoused” do not vote as regularly as who either rent or own their own home and otherwise lack political influence. It is householders who ultimately ultimately control political clout in urban areas and the fear of renters being unable to continue to afford to live where they do can be a serious driving force in local politics. Rent Control is a response to the prospects of many voters being priced out of their homes by The Market.
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