Rent control, an idea long discouraged by the overwhelming majority of economists, found popularity once again after the states of Oregon, New York and California recently implemented their own version of the concept. Illinois is also considering rent control measures.
This well-intended policy proposal is seductive. Rent control typically proposes a cap on the annual increase in rents to prevent price gouging in high-demand markets and requires stronger regulations on landlord-tenant relations. It also typically requires the creation of state and local authorities to govern the decision-making process.
While wages are rising in the United States, they’re not keeping up with the cost of living in many areas of the country. The Utah Foundation’s Community Quality of Life Index, for instance, indicates that “Housing affordability is an issue of increasing concern for Utahns.”
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