This study points to the simple fact that rent control is bad for the cities where it is in place and would simply be a disaster to Seattle. These redevelopment activities include tearing down the existing structure and putting up new single family, condominium, or multifamily housing or simply converting the existing structure to condos. This is because a number of buildings which were subject to rent control status in 1994 were redeveloped in such way so as to no longer be subject to it. Here is an eventual decline of almost 30 percent in the number of renters living in rent-controlled apartments, a decline which is significantly larger than the overall decline in renters in the city. вЂњRent control increased the probability a renter stayed at their address by close to 20 percent.' The beneficiaries of rent control have no motivation to move, meaning less housing opportunities are made available to renters new to the market. High-rent areas are much more likely to gentrify due to financial incentive for landlord to remove tenant.Дecreased social mobility and less housing opportunity for newcomers We conclude that this led to a city-wide rent increase of 7% and caused $5 billion of welfare losses to all renters. These effects are counterbalanced by landlords reducing supply in response to the introduction of the law. Consistent with these findings, there is a 15 percent decline in the number of renters living in these buildings and a 25 percent reduction in the number of renters living in rent-controlled units, relative to 1994 levels. In particular, rent-controlled buildings were almost 10 percent more likely to convert to a condo or a Tenancy in Common (TIC) than buildings in the control group, representing a substantial reduction in the supply of rental housing. вЂ‹Owners of rent controlled properties substitute toward other types of real estate that are not regulated by rent control. Less rental housing supply costs tenants substantially Of the details included in the Stanford study, the more interesting points include: Nicole Macri that legislation will be introduced in the 2018 session in an attempt to overturn the state ban on rent control.

ThatвЂ™s quite the indictment of a policy long-favored by tenant advocates and politicians who expressly claim that rent control is the only way to ensure housing affordability and to prevent gentrification. Rent control has actually fueled the gentrification of San Francisco, the exact opposite of the policyвЂ™s intended goal.вЂќ All of these responses lead to a housing stock which caters to higher income individuals. вЂњTaken together, we see rent controlled increased property investment, demolition and reconstruction of new buildings, conversion to owner occupied housing and a decline of the number of renters per building. On this, economists are near unanimously in agreement.Д«efore we share the howвЂ™s and whyвЂ™s of rent control failures, letвЂ™s start with the summary in the direct words of the researchers. RHAWA has long held that rent control is a failed policy, has far more unintended consequences which harm the housing market than there are good outcomes, and discourages the production of rental inventory to meet demand. Stanford University researchers recently published a new study on the impacts and effects of San FranciscoвЂ™s rent control policies and the results, well, they speak for themselves.

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