Rent control leads to housing shortages from "summary" of Free to Choose by Milton Friedman
Rent control is a well-intentioned policy aimed at helping low-income individuals afford housing. However, the unintended consequences of rent control can be detrimental to the housing market. When the government places a cap on how much landlords can charge for rent, it creates a disincentive for landlords to maintain or improve their properties. As a result, the quality of rental units may decline over time, leading to a shortage of desirable housing options for tenants.
Furthermore, rent control can lead to a misallocation of housing resources. Since landlords are unable to increase rent prices to reflect market demand, they may choose to convert their rental units into alternative uses or simply exit the rental market altogether. This reduction in the supply of rental housing can exacerbate the shortage of available unit...
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