Why Rent Control Doesn’t Work Well in Urban Areas
Chicago, IL — Over the last 10+ years, the US has gone from constructing too many houses to not building enough housing. The limited supply of available housing now has triggered prices and rents to rise at rates exceeding inflation and has dramatically increased the cost of housing for millions of households. As a result, calls for rent-control measures to ease the burden on middle- and lower-income households in states has now increased across the nation, which has met with oppositions. In other words, this is not a debate that will be settled any time soon. Marcus & Millichap’s John Sebree, though, does add a new talking point to the discussion.
Rent-control laws can work in two ways: setting a rent ceiling and/or limiting rent increases.