Rent Control Means Fewer Homes, and Higher Prices

Rent control is the failed policy idea that just won’t die. At a recent forum for candidates vying to become the next Mayor of North Las Vegas, all mayoral hopefuls came out in support of rent control as a way to make housing more affordable in Nevada. But rent control has never worked anywhere it has been tried. By reducing supply, rent control ultimately leads to higher prices for all but the select few who are in a rent-controlled unit. This is why Assar Lindbeck, widely considered Sweden’s top economist until his death in 2020, famously described rent control as being “the best way to destroy a city, other than bombing.” And he is hardly alone. In a 2012 survey of top economists, 95% of respondents said that rent control fails to achieve its ostensible goal of making housing more affordable. Read Full Article »