And where rent control is relatively weak, it is just one factor affecting the supply of new housing: for example, zoning laws generally treat apartments as an undesirable use, and thus may restrain housing supply far more aggressively than moderate rent control. Conversely, if government allows lots of new housing construction, new housing will be built as long as rent control is not so strict as to prevent it. Similarly, if government subsidizes new housing or builds new housing itself, the positive results of such construction may be more important than the effects of moderate rent control.

The economics of rent control – Michael Lewyn (Planetizen)

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