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The truth about rent control

We keep coming back to this one strategy. Renters deserve better.

As homeownership slips further out of reach in America, more people are spending more of their lives as renters. Millennials and Gen Zs are less likely to own homes than older generations did at the same age, and the median age of a first-time homebuyer recently reached an all-time high of 40, up from 28 in 1991.

That need not be a bad thing. Renting offers many benefits — flexibility, far lower upfront costs, never having to figure out what a “sacrificial anode rod” is — and homeownership is overrated as a savings vehicle.

But being a renter in America (as roughly one in three people here are) can also be a very undignified experience. In most states, your landlord can kick you out when your lease ends for no reason at all, even if you haven’t done anything wrong. Many tenants live in fear of receiving their next lease renewal, not knowing if they’ll be displaced by the next rent hike.

Some progressive policymakers, buoyed by the growing influence of democratic socialism and a resurgent tenant movement, are reviving an old, highly controversial answer to renters’ lack of security: simply ban steep rent increases through rent control.

In June, New York City, under Mayor Zohran Mamdani, froze rents on rent-stabilized apartments, which make up about 40 percent of the city’s rental housing stock. Rent control laws have been passed or tightened in recent years in places from Washington state to Los Angeles to Montgomery County, Maryland, and tenant advocates this year have pushed similar measures in Massachusetts, Washington, DC, Providence, Rhode Island, and Redwood City, California.

Decoding rent control jargon

• Rent control: The broad umbrella term for laws limiting how much landlords can charge or raise rents on covered homes. It can refer to anything from a total freeze to a relatively loose cap on the size of annual increases.

• Rent stabilization: A form of rent control that permits rents to rise but limits the size of annual increases, often according to inflation or a percentage set by a government board. It usually implies a less rigid system than a permanent price freeze.

• Rent freeze: A temporary prohibition on rent increases for apartments covered by rent control, like the policy adopted in NYC this summer.

• Vacancy decontrol: A rule allowing landlords to increase an apartment’s rent to its market rate after a tenant moves out. Limits on annual increases then resume once a new tenant moves in.

Rent control’s advocates argue that the policy not only moderates prices, but also offers tenants stability and a firmer claim to their homes. It helps put “the landlord-tenant dynamic on different and more equal footing,” as Siraj Sindhu, executive director of Reclaim Rhode Island, which backed a Providence rent-stabilization ordinance that passed the city council before being vetoed by the mayor, told me.

Those are really important goals. I’m a lifelong renter, having literally never lived in an owner-occupied home, and I hate that I can’t predict what my housing costs will be less than a year from now. But is rent control the best way to achieve stability?

Housing economists have long hated rent control; the Swedish economist Assar Lindbeck famously called it “the most efficient technique presently known to destroy a city — except for bombing.” Decades of research have found that it can have many unintended negative consequences, including depressing housing construction by making it financially impractical to build new rentals. And as we know from today’s crippling housing shortage, nothing is worse for long-term affordability than a scarcity of homes. More recent research, however, suggests that better-designed rent control laws can protect some tenants without having catastrophic consequences for housing supply.

That rent control keeps coming back as a centerpiece of our housing politics reflects just how impoverished our policy ideas are for providing renters what they lack most: predictable costs and secure tenure. The US has an elaborate policy infrastructure to privilege and subsidize homeownership, while treating renting as an afterthought, like a condition of poverty or at best a waystation on the path to buying a house. That makes ever less sense in a country where millions of people will rent for life, whether by choice or necessity.

The truth about rent control is somewhere between both extremes. It can, in some cases, certainly be worthwhile. But it remains a highly limited tool, and others can furnish some of the same benefits without fueling the very affordability crisis that they’re meant to address.

Why economists (mostly) oppose rent control

Rent control polls favorably, and it’s not hard to imagine why — voters despise high prices. Capping rents might intuitively seem fair and costless: The tenant is........

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