How Rent Control Squeezes the Housing Market

TL;DR

Rent-stabilized apartments are subject to annual rent increase limits set by the Rent Guidelines Board.
Economic theory posits that rent control reduces housing supply and creates market inefficiencies.
Studies indicate that rent control can lead to a decline in housing supply and a deterioration of housing quality.
New market-rate housing construction can lower rental prices across affordability levels through migration chains.
Landlords' decisions on rent are influenced by supply and demand, operating costs, and local market conditions.
Rent control programs may not be strictly redistributional, with higher earners sometimes benefiting disproportionately.
Landlords may withdraw units from the rent-controlled market or reduce maintenance due to insufficient rent revenue.
Regulatory barriers and zoning laws can hinder redevelopment and contribute to housing scarcity.
A two-tier housing system can emerge, where rent-controlled units are less expensive for existing tenants, while outsiders face exorbitant market-rate rents.

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