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This fact brief was originally published as an experiment to test the concepts behind fact briefs.

Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

FACT BRIEF

Do studies show that rent control always reduces the supply of rental housing?

Wednesday, November 18, 2020

By Austin Tannenbaum

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The effect of rent control on rental-housing supply appears to vary with local circumstances, as studies show no consistent pattern.

A 2015 study found that rent control in New Jersey "did not exert any statistically significant effects on their communities’ housing markets." A 2007 study found that the state's rent control laws "actually increased the supply of rental housing by incentivizing landlords to subdivide larger rental units."

A 2007 study found that rent control in Boston "did encourage owners to shift units away from rental status" by making it more profitable to build housing for sale or convert existing rentals for sale. A 2009 study found that rent control in San Francisco encouraged landlords to "reduce rental housing supplies by 15% by selling to owner-occupants and redeveloping buildings."

This fact brief is responsive to conversations such as this one.

Sources

Science Direct: Forty years of rent control—reexamining New Jersey’s moderate local policies after the great recession

Wiley: 30 Years of rent control in New Jersey

Jacobin: Why rent control works

Science Direct: What can we learn from the end of Massachusetts rent control?

American Economic Review: The effects of rent control expansion on tenants, landlords, and inequality—Evidence from San Francisco

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Gigafact

Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.

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About fact briefs published on Gigafact

Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.