The Problems with Rent Control

Rent control, despite being popular politically for offering cheaper rents, faces criticism from economists. Historically warned of by renowned economists like Milton Friedman, rent control policies are condemned for inefficient use of space, hindered new construction, and arbitrary space allocation. Cities like Stockholm exemplify these issues, with extremely strict rent control policies resulting in a broken system. Stockholm's rent control system leads to 20-year waiting lists in central areas, allocates housing to people who don't need it, and creates distortions like refusing to move or finding ways to keep the controlled housing in the family. The system has proven challenging to reform despite its clear deficiencies.