The debate over rent control in California is intensifying as new academic research challenges long-held views on the policy. Studies from institutions such as USC, UCLA, UC Berkeley, and Harvard Business Review are suggesting that moderate rent stabilization could be an effective tool to address the state's housing crisis.
"Rent regulation does not have the dire economic consequences that critics often claim," said Pastor. "Instead, it provides stability, especially for communities of color, seniors, and lower-income households — the very people most at risk of displacement."
Research indicates that rent regulations do not significantly hinder new housing construction when implemented with careful policy design. Rent stabilization is linked to increased tenant housing stability, which correlates with improved health outcomes and community engagement. It can also help reduce gentrification-driven displacement when combined with just-cause eviction protections and affordable housing development.
In 2023, economists including Mark Paul from Rutgers and Isabella Weber from UMass Amherst signed a letter urging the Federal Housing Finance Agency (FHFA) to consider rent control for federally backed loans. The letter criticized market fundamentalism in housing policy.
Studies cited include one from MIT showing that after rent control was repealed in Cambridge, rents rose without boosting housing supply. "Repealing rent control just transferred wealth from tenants to landlords," said economist David Autor.
Similarly, Stanford economist Rebecca Diamond found expanded rent control in San Francisco helped long-term tenants stay put and reduced displacement among older residents and people of color.
Recent lawsuits against property tech company RealPage allege collusion among landlords using algorithmic pricing software to inflate rents while maintaining high vacancy rates. Arizona Attorney General Kris Mayes stated: "The evidence shows that landlords deliberately accepted lower occupancy in exchange for higher prices."
Despite this growing body of research supporting rent regulation, it remains controversial. Critics argue supply constraints are the real issue rather than rent gouging. A UCLA professor noted: "If we simply build more, prices will come down."
YIMBY advocates emphasize upzoning to allow more multifamily housing but caution against potential drawbacks of strict rent caps deterring investment or limiting future supply.
However, a study by Yonah Freemark at the Urban Institute found modest increases in housing supply following upzoning changes. Freemark stated: "Market reforms can play a role...but alone they don’t deliver affordability at scale."
The emerging consensus suggests combining regulation with construction efforts—implementing rent stabilization alongside enforcing antitrust laws against price-fixing cartels like RealPage—and funding social housing projects offering permanently affordable homes.
"Rent control isn’t a silver bullet," said Vanessa Carter co-author of Rent Matters." But when paired with affordable housing production...it’s a vital part of the solution." Public sector involvement similar to other essential sectors like education or healthcare may be necessary given California's severe affordability issues amid stagnating wages and corporate landlord consolidation within rental markets statewide
"This is not an ideological debate anymore," remarked J.W Mason economist at John Jay College." It’s about what actually works...and done right -rent-control-works.” The question now lies whether policymakers will heed these findings amidst ongoing discussions surrounding effective solutions addressing Californian renters' needs
