Rent control

Rent control refers to laws that cap the rent that landlords may charge or limit annual increases, usually in specified buildings or cities. Versions range from strict "first-generation" controls that froze rents to "rent stabilization," which allows increases up to a limit tied to inflation. Some jurisdictions also restrict evictions.

In the U.S., New York City has had rent regulation since the 1940s, and California, Oregon and cities such as San Francisco, Los Angeles and Washington, D.C., have forms of it. Most states prohibit or limit local rent control. Mayoral candidates and legislators have proposed expansions as a response to housing costs.

Most economists regard rent control as harmful in the long run: studies, including a well-known Stanford study of San Francisco, found that it helps current tenants but reduces rental supply, as owners convert units or reduce maintenance, and raises rents elsewhere. Supporters argue that it provides stability and protects tenants from displacement, particularly the elderly and low-income households, and that markets with little supply leave renters vulnerable. Conservatives and libertarians also raise private property concerns and argue that the answer is to build more through zoning reform. It is a form of price controls. Owners have challenged it under the Takings Clause.