VoxEU.org

1 month ago | voxeu.org

Debates over rent control have a long history, with activists and economists highlighting both the benefits and drawbacks. This column revisits these arguments and examines empirical findings from Catalonia, where a recent rent-cap programme illustrates the policy’s consequential trade-offs. Though rent control can deliver short-run price relief, it also risks reducing supply and redistributing burdens across renter segments. As more governments consider such policies, it is crucial to study their effects across the entire distribution. Focusing solely on average impacts may miss key dynamics and unintended consequences.