EXTRA: Why Rent Control Doesn’t Work (Update)

This podcast episode examines the complexities of rent control, tracing its historical roots to World War II and discussing its economic implications, particularly in urban settings like San Francisco. Economists Ed Glaeser and Rebecca Diamond reveal how rent control can create housing scarcity, limit tenant mobility, and hinder new development, ultimately harming long-term affordability for future tenants. The episode scrutinizes the political motivations behind rent control, emphasizing the need for a balanced approach that considers both tenant protection and fair returns for landlords. Through discussions on commercial rent control and property tax exemptions, the episode concludes with a call for increased housing supply and reforms like zoning changes to better address the ongoing affordable housing crisis, drawing parallels to challenges faced in Sweden.