> This paper studies the effects of rent control on the housing wealth of renters, landlords, and homeowners. Over the nine months following the passage of rent control in St. Paul, Minnesota in 2021, average property values fell by 4.4% to 5.8%.

This seems like too short-term a study. The argument against artificially holding prices down is that people won't produce as much as they would otherwise and people won't be able to get the thing they would otherwise buy. So what we're predicting a rent control policy will do is cause a shortage of rental accommodation in the area.

Now how that expresses itself in an accounting sense, who knows (probably the economists). Good question to study. But I doubt the impacts of rent control would appear in the market this quickly, it'd take years for the market signals to be measurable. Initially rent controls will probably be set near the previously ideal market price, I'd guess there are a lot of 12 month leases and housing construction projects probably don't reset that quickly either.

> Over the nine months following the passage of rent control in St. Paul, Minnesota in 2021, average property values fell by 4.4% to 5.8%

This to me is the big one. So in addition to rents being more affordable (even if wealthier renters capture most of the gains) limiting the rental market profits also makes houses more affordable to buy? The paper is trying to argue this is bad, but I’m not seeing it.

It’s almost like “rent-seeking behavior” is a negative pejorative of an actor’s actions that negatively influence the market.

"Assessing effects of rent control on wealth is hard, so we threw most of that out and just used housing prices. Also, we're fairly sure that our results are good because there was nothing special happening in St. Paul in 2021 that we could figure. See this scatterplot that looks like inflation, note that the statistics we put just below it also don't look interesting but we've tied them to how rent controls are at the same time socialist and also evil and capitalist. We are objective parties to this because we say we are, please ignore the TLD we're serving this on."

You can almost hear yakitty sax playing in the background. I bet if you met the researchers you could honk their nose.

I feel the core issue isn’t wealth redistribution, it’s that rent controls create severe mismatches in supply and demand.

This seems like a lot of work looking at mostly housing prices during peak covid which is hardly a generalizable situation.

i see nobody read the paper.

> Similarly, we need to consider any one-time confounding events in control cities. Most notably, Minneapolis would be a natural control for St. Paul. However, in addition to the ballot measure on rent control, Minneapolis’s ballot also included referenda on mayoral power and policing. These confounding events mean that if property values in St. Paul changed relative to Minneapolis, we could not attribute the change to rent control.

their mistake is that they excluded Minneapolis for a bullshit reason here. you might as well do the analysis and then tell us. of course, they did, and found all the same effects as st. paul despite no rent control, so they chose not to talk about it.

When Boston ended rent control in the late 90s, all of the sudden the landlords invested in their goldmine buildings and generally improved the city. It sucks for those trying to rent or buy (including me, I paid 60% more for a house in 2002 than what it was worth in 1996), but the city has certainly had a renaissance.

IMHO, the problem now is bad zoning. The rich car-centric suburbs are preventing denser housing- to their own financial detriment. A recent fight is that the state has forced them to allow higher density housing around commuter rail stops. Similar fights about rail trails, future abutters are afraid of change but they are valuable everywhere they exist- in that they are a desirable feature and raise your house's value.

Another problem is that they overbuilt $100/sqft bio-lab space. These are sitting empty, and the owners refuse to lower the rent.. I don't understand how the owners remain solvent.

Important context: This paper is from 2023. In 2025, St. Paul massively rolled back rent control restrictions.

Their rent control used to have no exemptions, but now it's become very similar to SF rent control. Strict limit on how much rent can go up for current tenants, but can reset close to market rate when there's a 'just cause' vacancy. And all buildings built after X date are exempt entirely. (X=2004 in St. Paul, X=1979 in SF). Developers argued that any rent control at all limited their ability to finance housing projects.

I think results of studies like this were hugely influential to the changes in rent control that followed.

well it's not a free market anyway, and supply has been severely constrained for decades, so I'm okay with not screwing renters

One effect of rent-control that I have observed in San Francisco is that well-off people get into baller apartments with the intention of keeping them forever. Over time the rental rate gets inflated away to almost nothing, the person buys a mansion in suburbia, keeping their rent controlled penthouse as a pied-a-terre. In theory landlords would be looking to petition for eviction but that's usually not what happens.

Why not just redistribute directly? If the concern is that some existing residents will no longer be able to afford things, give long time residents a subsidy voucher.

Renters win, landlords lose. Seems like a win to me, idk