Most research related to this topic focuses on rent control rather than rent stabilization, similar to President Biden’s proposal. The effects of both policies are likely comparable. As with much economic research, the outcomes of rent control policies can be challenging to assess. Economics 101 suggests that in a free market, a price cap from rent control decreases profitability, which inevitably leads to less rental housing availability.
However, some studies present a different perspective. An article by Rutgers professor Mark Paul reviews numerous studies that identify positive effects of rent control, particularly for individuals living in rent-controlled units where costs are frozen. The research indicates that some people do benefit from such policies.
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