The Economic Consensus
Rent control is one of the few issues where economists across the political spectrum agree. A 2012 IGM Forum survey of leading economists found that 95% agree that "a ceiling on rents reduces the quantity and quality of housing available."
Key Research Findings
Stanford/NBER (Diamond et al., 2019)
The most comprehensive modern study examined San Francisco's rent control expansion. Key findings:
- Rent control reduced rental housing supply by 15%
- Landlords converted rental units to condos, redeveloped buildings, or removed units from the market
- While existing tenants benefited short-term, overall rents in the city increased by 5.1% due to reduced supply
MIT (Autor, Palmer & Pathak, 2014)
Studying the end of rent control in Cambridge, MA in 1995:
- Property values in previously rent-controlled buildings increased by 45%
- Neighboring non-controlled properties also saw significant value increases
- Housing investment and maintenance improved dramatically after decontrol
Harvard/NBER (Glaeser & Luttmer, 2003)
Examined the misallocation effects of rent control in New York City:
- Rent control leads to significant misallocation of housing
- Rent-controlled tenants consume more housing than they would at market rates
- Creates a "lock-in" effect where tenants stay in units that no longer match their needs
BYU (Sims, 2007)
Studied the end of Massachusetts rent control:
- After rent control ended, housing quality improved across formerly controlled units
- No significant displacement of vulnerable tenants as predicted by rent control advocates
- Market adjustment occurred smoothly over 2-3 years
The Massachusetts Context
Massachusetts voters ended rent control statewide in 1994 by referendum. The results confirmed what economists predicted: housing supply increased, property values rose, and investment in housing stock improved. Bringing back rent control would reverse these gains.
What About Tenants?
Research shows rent control helps a small number of current tenants at enormous cost to everyone else. Diamond et al. found that for every dollar of benefit to existing tenants, the wider community bore $2.50 in costs through reduced housing supply and higher market rents.