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Rent controls and vacancy decontrol hurt renters just as much as landlords

Rent controls hurt the long-term welfare of those who rent such units

Rent controls are a controversial policy instrument that left-leaning political parties and many housing advocates believe are necessary to improve housing affordability, but most economists disagree since they believe rent controls eliminate the incentive for landlords to either build new purpose-built rental housing or maintain existing rental housing in a state of good repair.

In Canada, vacancy decontrol, not rent controls, are common. Rent controls restrict landlords from setting base rents or limiting rent increases, while vacancy decontrol permits landlords to increase rents at higher-than-government-prescribed rates when a rental unit becomes vacant. …[Read More]