Capping rent can shrink the very supply it's meant to protect

When a city caps what landlords can charge, tenants who already have a lease benefit from lower bills — but economists have repeatedly found that landlords respond by converting rentals to condos, skipping maintenance, or simply building less new housing. A long-running study of San Francisco found rent control cut the rental housing stock it covered by 15%.

— Rebecca Diamond, Tim McQuade, and Franklin Qian, Housing Market Spillovers: Evidence from the End of Rent Control in San Francisco — American Economic Review, 2019

One credited idea per card. No filler. Swipe the rest in Savvy.

Keep swiping — it's free Works right in your browser. No app store needed.

More Economics

All Economics cards →

Five ideas worth knowing, every week

The week's best cards and a puzzle, credited as always. Free, unsubscribe any time.