:Rent regulation

The loose term "rent control" can apply to several types of price control:

• "strict price ceilings", also known as rent freeze systems, or absolute or first generation rent controls, in which no increases in rent are allowed at all (rent is typically frozen at the rate existing when the law was enacted)
• "vacancy control", also known as strict or strong rent control, in which the rental price can rise, but continues to be regulated in between tenancies (a new tenant pays almost the same rent as the previous tenant) and
• "vacancy decontrol", also known as tenancy or second-generation rent control, which limits price increases during a tenancy, but allows rents to rise to market rate between tenancies (new tenants pay market rate rent, but increases are limited as long as they remain).{{ r | GPG }}

Rent price controls remain the most controversial element of a system of rent regulation. Modern rent controls (sometimes called rent leveling or rent stabilization) are intended to protect tenants in residential properties from excessive rent increases. This is usually done by mandating gradual rent increases or rent freezes, while at the same time ensuring that landlords receive a return on their investment that is deemed fair by the controlling authority.{{citation needed|date=February 2023}}

Image:Binding-price-ceiling.svg decreases due to price ceiling, consumer surplus can increase but does not have to, quantity decreases and demand increases]]

There is consensus among economists that rent control reduces the quality and quantity of rental housing units.{{r | lightning-rod | p=1 | q=And yet economists from both the right and the left are in almost universal agreement that rent control makes housing problems worse in the long run. }}{{cite book |last1=Baumol |first1=William J |title=Economics Principles and Policy |last2=Blinder |first2=Alan S. |date=1994 |publisher=Dryden Press |isbn=0-03-098927-2 |edition=6th |pages=92–93, 379}}{{cite book |last1=Cooter |first1=Robert |title=Law and Economics 2nd Edition |last2=Ulen |first2=Thomas |date=1997 |publisher=Addison-Wesley |pages=32–33}}{{cite book |author1=David A Besanko |title=Microeconomics |author2=Ronald R. Braeutigam |date=2008 |publisher=John Wiley & Sons |isbn=978-0470-04924-2 |edition=3rd |location=Hoboken, New Jersey |pages=374–377 |chapter=10.5}}{{cite book |author1=B. Douglas Bernheim |title=Microeconomics |author2=Michael D Whinston |date=2008 |publisher=McGraw-Hill Irwin |isbn=978-0-07-290027-9 |edition=1st |page=565}}{{Cite book |last=Mankiw |first=N. Gregory |title=Principles of Economics |publisher=Cengage Learning |year=2015 |isbn=978-1-305-58512-6 |location=Boston, MA |pages=31 |author-link=Gregory Mankiw|quote=Propositions about Which Most Economists Agree: ... A ceiling on rents reduces the quantity and quality of housing available}}{{Cite journal |last1=Brandts |first1=Jordi |last2=Busom |first2=Isabel |last3=Lopez-Mayan |first3=Cristina |last4=Panadés |first4=Judith |date=2022 |title=Pictures are worth many words: Effectiveness of visual communication in dispelling the rent-control misconception |url=https://www.ssrn.com/abstract=4037381 |journal=SSRN Electronic Journal |language=en |doi=10.2139/ssrn.4037381 |issn=1556-5068 |hdl=2445/183641|hdl-access=free|quote=We focus on the popular belief that rent control allows more families to find affordable housing. The support for this policy is very large and widespread among the public in many countries. This belief, however, is at odds with scientific consensus arising from economic research. In a poll to economists from the IGM Economic Experts Panel, 95% strongly disagree that rent capping will increase the quantity of affordable housing.}}{{Cite web| title=CPG Housing Working Group Report on Rent Control | url=https://housingevidence.ac.uk/wp-content/uploads/2022/11/CPG-rent-control-final-011122.pdf | archive-url=https://web.archive.org/web/20221108124856/https://housingevidence.ac.uk/wp-content/uploads/2022/11/CPG-rent-control-final-011122.pdf | archive-date=2022-11-08}}{{Cite journal |last1=Marsh |first1=Alex |last2=Gibb |first2=Kenneth |last3=Soaita |first3=Adriana Mihaela |date=2022-08-01 |title=Rent regulation: unpacking the debates |journal=International Journal of Housing Policy |volume=23 |issue=4 |language=en |pages=734–757 |doi=10.1080/19491247.2022.2089079 |issn=1949-1247|doi-access=free |hdl=1983/e12d8c29-a7c0-4cea-ba0e-85363841d111 |hdl-access=free }} However, some economists challenge this consensus and argue that controls do not have a statistically significant impact on quantity and quality of housing units.{{Cite journal |last1=Marsh |first1=Alex |last2=Gibb |first2=Kenneth |last3=Soaita |first3=Adriana Mihaela |date=2022-08-01 |title=Rent regulation: unpacking the debates |journal=International Journal of Housing Policy |volume=23 |issue=4 |language=en |pages=734–757 |doi=10.1080/19491247.2022.2089079 |issn=1949-1247|doi-access=free |hdl=1983/e12d8c29-a7c0-4cea-ba0e-85363841d111 |hdl-access=free }}{{cite journal | url=https://doi.org/10.1111/j.1467-9906.2007.00334.x | doi=10.1111/j.1467-9906.2007.00334.x | title=Thirty Years of Rent Control: A Survey of New Jersey Cities | date=2007 | last1=Gilderbloom | first1=John I. | last2=Ye | first2=Lin | journal=Journal of Urban Affairs | volume=29 | issue=2 | pages=207–220 | s2cid=153505704 }}{{cite journal | url=https://doi.org/10.1016/j.cities.2015.08.001 | doi=10.1016/j.cities.2015.08.001 | title=Forty years of rent control: Reexamining New Jersey's moderate local policies after the great recession | date=2015 | last1=Ambrosius | first1=Joshua D. | last2=Gilderbloom | first2=John I. | last3=Steele | first3=William J. | last4=Meares | first4=Wesley L. | last5=Keating | first5=Dennis | journal=Cities | volume=49 | pages=121–133 }}

One historical example of widespread rent control occurred in the US during World War II. Roughly 80% of rental housing was put under rent control in 1941. The observed result was that landlords opted to sell their units at uncontrolled prices rather than renting at controlled prices, leading to an increase in home ownership and a decrease in rental units.{{Cite journal |last=Fetter |first=Daniel K. |date=September 16, 2013 |title=The Home Front: Rent control and the rapid wartime increase in home ownership |url=https://economics.yale.edu/sites/default/files/fetter-130930.pdf |journal=Wellesley College | quote=Conclusion - This paper presents new evidence on the effects of rent control during World War II. The analysis suggests that rent control induced landlords to withdraw their units from the rental stock in order to sell them for owner-occupancy at uncontrolled prices. Two complementary analyses give evidence in support of this hypothesis. First, in a newly compiled dataset on newspaper advertisements from 1939 to 1946, I use variation in the timing of imposition of rent control, and show that cities saw differential increases in the number of sale advertisements at the time of control and for at least several quarters thereafter.}}

A number of neo-classical and Keynesian economists say that some forms of rent control regulations create shortages and exacerbate scarcity in the housing market by discouraging private investment in the rental market. In addition, there would be a dead weight loss and inefficiency since some of the loss due to price ceilings is never gained again.C Rapkin,The Private Rental Housing Market in New York City (1966) and G Sternlieb, The Urban Housing Dilemma (1972){{ r | 2009_econ_lit_review}} This analysis targeted nominal rent freezes, and the studies conducted were mainly focused on rental prices in Manhattan, or elsewhere in the United States.{{citation needed|date=February 2023}}

In 1971, the Swedish economist Assar Lindbeck, a housing expert, said that "rent control appears to be the most efficient technique presently known to destroy a city – except for bombing".{{cite web |author=Fraser Nelson |author-link=Fraser Nelson |date=2 May 2014 |title=Low-rent Labour is positioning itself as the Ukip of the Left |url=https://www.telegraph.co.uk/news/politics/ed-miliband/10802231/Low-rent-Labour-is-positioning-itself-as-the-Ukip-of-the-Left.html |access-date=29 October 2016 |newspaper=The Daily Telegraph}}{{cite news |last=Rosalsky |first=Greg |date=2019-03-05 |title=The Return of Rent Control |url=https://www.npr.org/sections/money/2019/03/05/700432258/the-return-of-rent-control |newspaper=NPR}}

In a 1992 stratified, random survey of 464 US economists, economics graduate students, and members of the American Economic Association, 93% "generally agreed" or "agreed with provisos" that "A ceiling on rents reduces the quantity and quality of housing available."{{ r | 1992_poll | p=204 | q=76.3% generally agreed, 16.6% agreed but with provisos }} {{ r | Krugman_NYT | p=1 | q=The analysis of rent control is among the best-understood issues in all of economics, and -- among economists, anyway -- one of the least controversial. In 1992 a poll of the American Economic Association found 93 percent of its members agreeing that "a ceiling on rents reduces the quality and quantity of housing." }}

A 2009 review of the economic literature{{ r | 2009_econ_lit_review | p=106 | q=If rent-control is such a "no-brainer," why bother to scrutinize the literature? The cluster of restrictions persists in roughly 140 jurisdictions in the United States as of 2001. As Hazlett (1982) notes, "economists have been notoriously thorough in convincing themselves of the destructive effects of rent control and notoriously inept at convincing anyone else" (278). Better understanding of the issue might help correct the error, prevent other governments from falling into it, and promote an understanding among more than just economists. Also, better understanding is an end in itself. }} by Blair Jenkins through EconLit covering theoretical and empirical research on multiple aspects of the issue, including housing availability, maintenance and housing quality, rental rates, political and administrative costs, and redistribution, for both first generation and second generation rent control systems, found that "the economics profession has reached a rare consensus: Rent control creates many more problems than it solves".{{ r | 2009_econ_lit_review | p=105 | q=My review of the rent-control literature indexed by EconLit (or cited by such indexed articles) finds that economic research quite consistently and predominantly frowns on rent control. ... As Navarro (1985) notes, "the economics profession has reached a rare consensus: Rent control creates many more problems than it solves" (90). }} {{ r | 2012_Urban_Inst | p=1 | q=In a comprehensive overview of the research literature, Blair Jenkins examined studies of different aspects of first-generation rent control (strict price ceilings) and second-generation (limits on increases, also referred to as rent stabilization). The upshot is that, at best, rent control does little harm but probably not much good and, at worst, it has negative impacts on landlords and tenants. There is near universal agreement that strict price ceilings, such as the kind imposed in New York City in the 1940s, are always bad because they severely inhibit housing production and investment. Even those most sympathetic to rent control seem to agree with this. }} {{ r | Forbes_RC_cities | p=1 | q=Bad ideas die hard, and rent control is no exception. For several decades, there has been near-consensus [the author links to the Blair Jenkins study on the words "near-consensus"] among economists that laws which cap or regulate rents are counterproductive, and most cities have ended them. }} {{ r | Forbes_RC_Valdez | p=1 | q=Rent control is one of those policies that feels good—who doesn't want to set price by fiat (I only want to pay $3.00 for this sandwich)—but it is fundamentally flawed. It has been a few years now, but Blair Jenkins has written a review of the economics literature and quotes an economist who says, "the economics profession has reached a rare consensus: Rent control creates many more problems than it solves" }}.

In a 2012 poll of 41 economists by the Initiative on Global Markets (IGM) Economic Experts Panel, which queried opinions on the statement "Local ordinances that limit rent increases for some rental housing units, such as in New York and San Francisco, have had a positive impact over the past three decades on the amount and quality of broadly affordable rental housing in cities that have used them," 13 members said they strongly disagreed, 20 disagreed, 1 agreed, and 7 either did not answer, were undecided, or had no opinion.{{ r | 2012_IGM }} {{ r | SFChronicle_RC_1 | p=1 | q=A 2012 survey by the University of Chicago's Booth School of Business asked respected economists if they agreed that rent-control ordinances in cities such as New York and San Francisco have improved the quantity and quality of affordable rental housing over the past three decades. Eighty-one percent disagreed, 2 percent agreed and 9 percent were uncertain or had no opinion. }} {{ r | WaPo_Econ_quiz | p=1 | q=The findings of consensus are usually predictable. Economists, sure enough, hate rent control, [In this article, the author hyperlinks to the 2012 Chicago poll on the words rent contol.] licensing requirements and the gold standard, love free trade (including with China), high-skilled immigration, congestion pricing and carbon taxes, and think the Laffer curve is a bunch of baloney. Other answers are more surprising. The panelists lean toward supporting tougher capital requirements on big banks and backing the 2009 stimulus package, and, by a wide margin, back increasing the minimum wage to $9 an hour and indexing it to inflation. The results don't always map easily onto U.S. political divides. }}.

In David Sims's 2007 study of the deregulation of the housing market in Cambridge, Massachusetts, he found that "rent control had little effect on the construction of new housing but did encourage owners to shift units away from rental status and reduced rents substantially."{{Cite journal |last=Sims |first=David P. |date=2007-01-01 |title=Out of control: What can we learn from the end of Massachusetts rent control? |url=https://www.sciencedirect.com/science/article/pii/S0094119006000635 |journal=Journal of Urban Economics |language=en |volume=61 |issue=1 |pages=129–151 |doi=10.1016/j.jue.2006.06.004 |issn=0094-1190}}

Paul Krugman writes that rent control inhibits construction of new housing, creates bitter tenant–landlord relations, and in markets with not all apartments under rent control, causes an increase in rents for uncontrolled units.

Thomas Sowell wrote in 2008 that rent control reduces the supply of housing,{{ r | Sowell_EF&F | p=4 | q=Rent control, for example, has been imposed in various cities around the world, with the intention of helping tenants. Almost invariably, landlords and builders of housing find the reduced range of terms less acceptable and therefore supply less housing. ... In other words, while landlords and builders simply lost an opportunity to make as much money as they could have otherwise, many tenants lost an opportunity to find a decent place to live. }} and has stated that rent control increases urban blight.{{ r | Sowell_EF&F | p=5 }} {{ r | Sowell_Salon | p=1 | q=You aren't a fan of rent control? No, I'm not. A figure I ran across recently that struck me as illustrating the moral bankruptcy of rent control is this: The number of boarded-up housing units in New York City is four times the number of homeless people on the streets. To think of that! On winter nights there are people sleeping on the cold pavement and dying of exposure, when there are these buildings that are boarded up as a consequence of economic protectionism. }}

In 1994, San Francisco voters passed a ballot initiative which expanded the city's existing rent control laws to include small multi-unit apartments with four or fewer units, built prior to 1980 (about 30% of the city's rental housing stock at the time).{{ r | SF_RC_study_2017 | p=7 | q="These small multi-family structures made up about 30% of the rental housing stock in 1990..." }}{{ r | MN_RC | p=1 | q=When San Francisco residents voted in 1994 to expand the city's rent-control policies, they granted protections to legions of renters living in duplexes and other small, "mom and pop" apartment buildings constructed before 1980 — 30 percent of the city's rental housing stock. }}{{ r | BizJournal_RC | p=1 | q=Rent control started in San Francisco in 1979, when economic pressures and the passage of Prop. 13, which limited property tax increases, led then-Mayor Dianne Feinstein to sign the policy into law for properties built before 1980. An exemption was given to "mom and pop" landlords, or owner-occupied buildings with four or less units. These made up around 30 percent of the city's rental housing stock at the time. To skirt rent control, large corporations starting buying up those properties and selling a portion back to a live-in representative. This in turn led to a successful ballot initiative in 1994 to remove the exemption. The Stanford researchers looked at the effects on tenants who received rent control because of the ballot initiative versus tenants living in similar properties who were not subject to the new rule. }} A 2019 study found that San Francisco's rent control laws resulted in landlords removing 30% of the rent controlled units from the rental market (by conversion to condos or TICs) which led to a 15% citywide decrease in total rental units, and a 7% increase in citywide rents.{{Cite journal|last1=Qian|first1=Franklin|last2=McQuade|first2=Tim|last3=Diamond|first3=Rebecca|date=2019|title=The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco|journal=American Economic Review|language=en|volume=109|issue=9|pages=3365–3394|doi=10.1257/aer.20181289|issn=0002-8282|doi-access=free}}{{r | MN_RC | BizJournal_RC | SFGate_RC}}{{r | Gov_RC | p=1 | q=The report focused on San Francisco, where a 1994 ballot measure expanded rent control to certain smaller multifamily apartment buildings constructed before 1980. Because units built after 1980 were not included in the expansion, the result was what researchers call a "natural experiment" in which the newer units could act as a control group. The researchers then tracked tenants' housing as well as changes in the housing stock and rents. }}{{r | CityLab_RC | p=1 | q=The researchers examined the impact of a 1994 ballot initiative in San Francisco, extending rent control protections to certain smaller buildings built before 1980. Its passage created a natural opportunity to compare these buildings with similar ones built in the period after that were not rent controlled. Diamond and her colleagues followed the landlords and the tenants in these buildings over time. }}{{r | StanfordGSB_RC }}

In a 2013 analysis of the body of economic research on rent control by Peter Tatian at the Urban Institute, he stated that "The conclusion seems to be that rent stabilization doesn't do a good job of protecting its intended beneficiaries—poor or vulnerable renters—because the targeting of the benefits is very haphazard.", and concluded that: "Given the current research, there seems to be little one can say in favor of rent control." {{r | 2012_Urban_Inst | p=1 | q=Given the current research, there seems to be little one can say in favor of rent control. What, then, should be done to help renters obtain affordable, decent housing? A better approach may be adopting policies that encourage the production of more diverse types of housing (different densities, tenure types, unit sizes, etc.), implementing strong regulations and practices to ensure housing quality and to protect tenants from abuses; and providing targeted, direct subsidies to people who need help paying their rents. }} {{r | SFChronicle_RC_1 | p=1 | q=In 2013, Peter Tatian of the Urban Institute reviewed academic research on rent control and found "very little evidence that rent control is a good policy." }} {{r | CityLab_RC_NYC | p=1 | q=Then again, as Peter Tatian of the Urban Institute recently wrote here, [the author hyperlinks to the Peter Tatian analysis on the words "recently wrote here"] there's "very little evidence that rent control is good policy." Studies have found that landlords with rent-controlled units often inflate the rent on other units to make up the loss, and that rent-stabilization programs don't do a great job targeting the poor residents they're supposed to protect. }}

A 2016 study by NYU's Furman Center takes a more positive view on rent regulation, especially as a tool to slow gentrification: "Although rent regulation is ill-targeted if viewed as a purely redistributional program," write the three authors of the study, "as a program to promote longer-term lower rent tenancies for the tenants who benefit from it, even in hot rental markets, it seems to succeed."{{Cite web |last1=Herrine |first1=Luke |last2=Yager |first2=Jessica |last3=Mian |first3=Nadia |date=26 October 2016 |title=Gentrification Response: A Survey of Strategies to Maintain Neighborhood Economic Diversity |url=https://furmancenter.org/files/NYUFurmanCenter_GentrificationResponse_26OCT2016.pdf |access-date=2 January 2022 |website=The Furman Center}}

A 2021 Columbia Business School study found that there are benefits to rent regulation,{{Cite journal |last1=Favilukis |first1=Jack Y. |last2=Mabille |first2=Pierre |last3=Van Nieuwerburgh |first3=Stijn |date=2021-06-11 |title=Affordable Housing and City Welfare |url=https://papers.ssrn.com/abstract=3265918 |journal=Columbia Business School Research Paper Series |language=en |location=Rochester, NY |ssrn=3265918}} arguing that "the housing stability they provide disproportionately benefits low-income households. These insurance benefits trade off against the aggregate and spatial distortions in housing and labor markets that accompany such policies."

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{{expand section|date=March 2019}}

Rent control was used in Rome as early as 1470 to protect Jewish residents from price gouging. Since Jews in the Papal States were forbidden to own property, they were dependent on Christian landlords, who charged them high rents. In 1562, Pope Pius IV granted Jews the right to own property worth up to 1,500 Roman scudi and enacted rent stabilization. In 1586, Pope Sixtus V issued a bull ordering landlords to rent out houses to Jewish tenants at reasonable rates.{{Cite journal |last=Willis |first=John W. |date=1950 |title=Short History of Rent Control Laws |url=https://scholarship.law.cornell.edu/clr/vol36/iss1/3/ |journal=Cornell Law Review |volume=36 |issue=1 |pages=54–94 |via=Cornell University Law Library |access-date=7 March 2019}}

Rental regulations are administered by the state and territory governments. Rent control and freezes were features of the First and Second World War, the Great Depression, and the early stages of the COVID-19 pandemic.{{Cite web |last=z5076905 |date=2022-08-29 |title=Is it time to talk about rent control in Australia? |url=https://newsroom.unsw.edu.au/news/social-affairs/it-time-talk-about-rent-control-australia |access-date=2022-11-04 |website=UNSW Newsroom}}

The Australian Capital Territory (ACT) is the only jurisdiction with regulation specifying maximum rent increases. Rents can only be increased for sitting tenants once a year by a maximum of 110% of the consumer price index for the cost of rent in the ACT.{{Cite web |last=ACT Government |date=1 April 2023 |title=Part 5, Residential Tenancies Act 1997 (ACT) |url=https://www.legislation.act.gov.au/sl/1998-17/default.asp |access-date=25 June 2023 |website=ACT Legislation Register}}{{Cite web |last=ACT Government |date=1 April 2023 |title=Part 2, Residential Tenancies Regulation 1998 (ACT) |url=https://www.legislation.act.gov.au/sl/1998-17/default.asp |access-date=25 June 2023 |website=ACT Legislation Register}}{{Cite web |last=ACT Government Justice and Community Safety Directorate |date=March 2021 |title=The Renting Book |url=https://www.justice.act.gov.au/__data/assets/pdf_file/0006/2074488/Renting-Book-March-2021-Update-Authorised-by-JACS-DG.pdf |url-status=live |archive-url=https://web.archive.org/web/20221025021122/https://www.justice.act.gov.au/__data/assets/pdf_file/0006/2074488/Renting-Book-March-2021-Update-Authorised-by-JACS-DG.pdf |archive-date=25 October 2022 |access-date=4 November 2022 |website=The Renting Book |pages=28–31}} Rents between tenancies are not regulated, and are allowed to rise to market rate upon vacancy (vacancy decontrol).{{Cite web |last=Clun |first=Rachel |date=25 June 2023 |title=The one place in Australia with rent control |url=https://www.smh.com.au/politics/federal/the-one-place-in-australia-with-rent-control-20230609-p5dfar.html |access-date=25 June 2023 |website=The Sydney Morning Herald}} Rent increases above the amount prescribed by regulation may be disputed by application to the ACT Civil and Administrative Tribunal (ACAT).{{Cite web |last=Legal Aid ACT |date=25 June 2023 |title=Tenancy: Rent Increases |url=https://www.legalaidact.org.au/sites/default/files/files/publications/Rent_Increases_May_2022.pdf |access-date=25 June 2023 |website=Legal Aid ACT}}{{Cite web |last=ACT Civil and Administrative Tribunal (ACAT) |date=25 June 2023 |title=About ACAT |url=https://www.acat.act.gov.au/about-acat |access-date=25 June 2023 |website=ACT Civil and Administrative Tribunal}} Other Australian jurisdictions allow for rent increases every six to twelve months with variable notice periods.{{Cite web |date=2022-10-24 |title=How Much Is Rent Allowed to Increase (And How Often)? |url=https://propertyupdate.com.au/how-much-and-how-often-can-i-increase-the-rent-of-my-investment-property/ |access-date=2022-11-04 |website=Property Update |language=en-US}}

New South Wales has a small number of tenants who are not covered by the Residential Tenancies Act 2010 (NSW),{{Cite web |last=NSW Legislation |date=13 January 2023 |title=Residential Tenancies Act 2010 (NSW) |url=https://legislation.nsw.gov.au/view/html/inforce/current/act-2010-042 |access-date=25 June 2023 |website=NSW Legislation}} but rather continuing provisions of the repealed [https://legislation.nsw.gov.au/view/html/repealed/current/act-1948-025 Landlord and Tenant (Amendment) Act 1948 (NSW)].{{Cite web |last=NSW Legislation |title=Landlord and Tenant (Amendment) Act 1948 (NSW) |url=https://legislation.nsw.gov.au/view/html/repealed/current/act-1948-025 |access-date=25 June 2023 |website=NSW Legislation}}{{Cite web |last=Tenants' Union of NSW |date=25 June 2023 |title=Protected Tenants Infosheet |url=https://www.tenants.org.au/resource/protected-tenants-infosheet |access-date=25 June 2023 |website=Tenants' Union of NSW}}{{Cite web |last=McKenny |first=Leesha |date=22 November 2012 |title=Protected tenants face uncertain future |url=https://www.smh.com.au/national/nsw/protected-tenants-face-uncertain-future-20121121-29q3c.html |access-date=25 June 2023 |website=The Sydney Morning Herald}}{{Cite web |last=Schneller |first=Edwina |date=March 2013 |title=Protected tenancies: history and proposals for reform |url=https://www.parliament.nsw.gov.au/researchpapers/Documents/protected-tenancies--history-and-proposals-for-r/Protected%20Tenants.pdf |access-date=25 June 2023 |website=NSW Parliamentary Research Service}} Such ‘protected tenants’ pay a regulated ‘fair rent’ set either through a Section 17A agreement registered with NSW Fair Trading, or a magistrate sitting as the Fair Rents Board (NSW).{{Cite web |last=Older Persons' Tenants Service |date=June 2014 |title=2014 CPSA Guide to Protected Tenancies in NSW |url=https://files.tenants.org.au/resources/2014-CPSA-Guide-to-Protected-Tenancies-in-NSW.pdf |access-date=25 June 2023 |website=Tenants' Union of NSW}}

{{main|Rent regulation in Canada|Rent control in Ontario}}

In Canada, there are rent regulation laws in each province. For example, in Ontario the Residential Tenancies Act 2006 requires that prices for rented properties do not rise more than 2.5 percent each year, or a lower figure fixed by a government minister.

China announced in August 2021 new nationwide rent regulations that cap maximum yearly rent increases to 5% in all urban areas, which comprise over 2/3 of the population and include most of the ~250 million renters in the country.{{Cite web |date=2021-08-31 |title=China to put a cap on urban rents to improve housing affordability |url=https://www.scmp.com/business/money/money-news/article/3147047/china-cap-annual-urban-rent-increases-5-cent-rein-runaway |access-date=2022-07-26 |website=South China Morning Post |language=en}}

Rent regulations are determined in France based on the Rent Reference Index, which serves as the basis for what landlords can increase yearly rents by.{{Cite web |title=Indice de référence des loyers (IRL) |url=https://www.service-public.fr/particuliers/vosdroits/F13723 |access-date=2022-07-27 |website=www.service-public.fr |language=Fr}} In July 2022, France introduced a new cap on yearly rent increase of a maximum of 3.5% for one year.{{Cite web |date=2022-07-08 |title=France to limit rent rises to help households with cost of living |url=https://www.thelocal.fr/20220708/france-to-limit-rent-rises-to-help-households-with-cost-of-living/ |access-date=2022-07-27 |website=The Local France |language=en-US}}

German rent regulation is found in the "Civil Code" (the Bürgerliches Gesetzbuch) in § 535 to § 580a.English translation available: [http://www.gesetze-im-internet.de/englisch_bgb/englisch_bgb.html#p1936 §§ 535 ff. BGB] As common in German law, regulations are structured into an abstract, more general part that applies to all contracts of a certain type, followed by a more specific section for individual fields of application of this type of contract. Specific regulations for rental contracts governing apartments range from §§ 549 - 577a BGB.

The German law differentiates between the rental price at the starting point of the contract and rent increases throughout the duration of the contract. Generally, the rental price at the starting point of the contract is determined by the contractual agreement between the parties. Only in designated regions with a strained housing market, the rental price at the beginning of the rental agreement are capped by law. Increases in the rental prices throughout the duration of a rental contract are required to follow a "rent level" (Mietspiegel), which is a database of local reference rent prices. This collects all rent prices of new rental contracts of the past four years, and landlords may only increase prices on their property in line with rents in the same locality. Usury Rents are prohibited altogether, so that any price rises above 20 per cent over three years are unlawful.{{cite journal |author= M Haffner, M Elsinga and J Hoekstra |title= Rent Regulation: The Balance between Private Landlords and Tenants in Six European Countries |date=2008 |volume=8 |issue=2 |journal= International Journal of Housing Policy |pages= 217–233|doi= 10.1080/14616710802037466 |s2cid= 154288124 }}

Tenants may be evicted against their will through a court procedure for a good reason, and in the normal case only with a minimum of three months' notice.BGB [http://www.gesetze-im-internet.de/englisch_bgb/englisch_bgb.html#p2227 §573c] Tenants receive unlimited duration of their rental agreement unless the duration is explicitly halted. In practice, landlords have little incentive to change tenants as rental price increases beyond inflation are constrained. During the period of the tenancy, a person's tenancy may only be terminated for very good reasons. A system of rights for the rental property to be maintained by the landlord is designed to ensure quality of housing. Many states, such as Berlin, have a constitutional right to adequate housing, and require buildings to make dwelling spaces of a certain size and ceiling height.{{Citation needed|date=September 2018}}

In 2020, Berlin implemented a rent freeze, which was unprecedented in the German housing market. It benefitted sitting renters, but it substantially reduced the supply of new housing, harming those looking for a dwelling. The rent freeze was repealed in 2021.{{Cite journal |last1=Sagner |first1=Pekka |last2=Voigtländer |first2=Michael |date=2022 |title=Supply side effects of the Berlin rent freeze |url=https://doi.org/10.1080/19491247.2022.2059844 |journal=International Journal of Housing Policy |volume=23 |issue=4 |pages=692–711 |doi=10.1080/19491247.2022.2059844 |s2cid=248615020 |issn=1949-1247}}

Yearly rent increases in the Netherlands are capped at a maximum of inflation + 1%, calculated as 3.3% in 2022.{{Cite web |last=Koninkrijksrelaties |first=Ministerie van Binnenlandse Zaken en |date=2013-05-14 |title=Rented housing - Housing - Government.nl |url=https://www.government.nl/topics/housing/rented-housing |access-date=2022-07-27 |website=www.government.nl |language=en-GB}}

The Catalonia region of Spain passed a rent-regulation law in September 2020.

{{cite web

|url= https://www.elnacional.cat/en/politics/catalonia-rent-control-law-parliament_537009_102.html

|title= Catalonia now has a rent control law, via the votes of JxCat, ERC, CUP and Comuns

|newspaper= ElNacional.cat|author= Marc González

|date= 10 Sep 2020|access-date= 27 October 2020

}}

{{see also|History of rent control in England and Wales|Affordability of housing in the United Kingdom|Rent regulation in England and Wales|Rent control in Scotland|English land law}}

File:Graph-house-prices-1975-2006.gif

Rent regulation covered the whole of the UK private sector rental market from 1915 to 1980. However, from the Housing Act 1980, it became Conservative Party policy to deregulate and dismantle rent regulation. Regulation for all new tenancies was abolished by the Housing Act 1988, leaving the basic regulatory framework was "freedom of contract" by the landlord to set any price. Rent regulations survive among a small number of council houses, and often the rates set by local authorities mirror escalating prices in the non-regulated private market.

{{main|Rent control in the United States}}

{{seealso|Rent control in California|Rent regulation in New York|Rent control in Massachusetts}}

Rent regulation in the United States is an issue for each state. In 1921, the US Supreme Court case of Block v. Hirsh{{ussc|256|135|1921}} held that regulation of rents in the District of Columbia as a temporary emergency measure was constitutional, but shortly afterward in 1924 in Chastleton Corp v. Sinclair{{ussc|264|543|1924}} the same law was unanimously struck down by the Supreme Court. After the 1930s New Deal, the Supreme Court ceased to interfere with social and economic legislation, and many states adopted rules.{{Citation needed|date=December 2015}} In the 1986 case of Fisher v. City of Berkeley,{{ussc|475|260|1986}} the US Supreme court held that there was no incompatibility between rent control and the Sherman Act.

Rent control existed in several Massachusetts communities from 1970 to 1994. During this time, at least 20% of all rent-controlled apartments in Cambridge housed the rich.{{r|move}} The vast majority housed middle- and high-income earners.{{r|move}} They included Frederik, Crown Prince of Denmark.{{cite web | url = https://rentcontrolhistory.com/chapters/renters-who-needed-to-move-couldnt-qualify/ | title = Renters who needed to move couldn't qualify. | publisher = Mass Landlords, Inc | accessdate = January 3, 2024 }}

As of 2018, 4 states (California, New York, New Jersey, and Maryland) and the District of Columbia have localities in which some form of residential rent control is in effect (for normal structures, excluding mobile homes).{{ r | NMHC | Landlord_com }} 37 states either prohibit or preempt rent control, while 9 states allow their cities to enact rent control, but have no cities that have implemented it.{{ r | NMHC | Landlord_com }}

For the localities with rent control, it often covers a large percentage of that city's stock of rental units: For example: in New York City in 2011, 45% of rental units were either "rent-stabilized" or "rent-controlled", (these are different legal classifications in NYC)

{{ r | NYC_RC_percent | p=1 | q=Rent stabilized units in 2011, according to a study by NYU's Furman Center. Rental units in the city: 2,172,634 Rent stabilized: 986,840 Rent controlled: 38,374 }}

in the District of Columbia in 2014, just over 50% of rental units were rent-controlled,

{{ r | DC_RC_percent | p=1 | q=According to the Department of Housing and Community Development, D.C. had about 79,000 rent-controlled units in 2011, out of 120,000 to 145,000 total rental units. This year, the Urban Institute estimates, 90,700 units in the city are potentially subject to rent control (there are a few exemptions that could reduce the number slightly), out of 177,600 total rental units. }}

in San Francisco, as of 2014, about 75% of all rental units were rent-controlled,

{{ r | SF_RC_percent | p=1 | q=First off, understand the math of the region. San Francisco has a roughly thirty-five percent homeownership rate. Then 172,000 units of the city's 376,940 housing units are under rent control. (That's about 75 percent of the city's rental stock.) }}

and in Los Angeles in 2014, 80% of multifamily units were rent controlled.

{{ r | LA_RC_percent | p=1 | q=Eighty percent of the 880,581 multifamily units in the city of Los Angeles are covered by rent control, according to the Los Angeles Housing and Community Investment Department. }}

In 2019 California passed a statewide rent cap for the next 10 years which limits yearly rent increases to 5% plus regional inflation.{{ cite news | url=https://www.latimes.com/california/story/2019-10-08/california-rent-cap-tenant-protections-signed | title=California will limit rent increases under bill signed by Gov. Gavin Newsom | last=Dillon | first=Liam | work=Los Angeles Times | date=2019-10-08 }}

In 2019 Oregon's legislature passed a bill which made the state the first in the nation to adopt a state-wide rent control policy. This law limits annual rent increases to inflation plus 7 percent, includes vacancy decontrol (market rate between tenancies), exempts new construction for 15 years, and maintains the state ban on local rent control policies (state level preemption).

{{ r | NPR_Oregon_RC | p=1 | q=The bill would limit rent increases to 7 percent each year, in addition to inflation. Subsidized rent would be exempted, as would new construction for 15 years. If tenants leave their residences of their own volition, landlords would be able to increase the rent without a cap. }}

{{ r | OL_OR_RC | p=1 | q=The law caps annual rent increases to 7 percent plus inflation throughout the state, which amounts to a limit of just over 10 percent this year. ... The rent increase restrictions exempt new construction for 15 years, and landlords may raise rent without any cap if renters leave of their own accord. ...with only perfunctory opposition from landlord groups, who viewed it as a better alternative to removing the state's ban on local rent control policies. The new law keeps the ban in place. }}

In November 2021, voters in Saint Paul, Minnesota passed a rent control ballot initiative which capped annual rent increases at 3 percent, included vacancy control, and did not exempt new construction, nor allow inflation to be added to the allowable rate increase.{{ r | Reason_2022-03-22 }}{{ cite news | url=https://www.startribune.com/st-paul-braces-for-rent-control-tenant-landlord/600118971/ | title=Fearing a spike, tenant advocates keep a close eye on St. Paul rents | last=Galioto | first=Katie | newspaper=Star Tribune | date=2021-11-20 | quote=More than 30,000 St. Paul residents — about 53% of voters — approved an ordinance by referendum earlier this month that will cap annual rent increases at 3%. The city has yet to hammer out the finer points of its new policy, which has been pegged as one of the most stringent rent control measures in the nation because it does not allow landlords to raise rents once a tenant moves out, does not exempt new construction and is not tied to inflation. }} This was followed by an 80% reduction in requests for new multifamily housing permits, while in neighboring Minneapolis, where voters authorized the city council to craft a rent control ordinance, yet to be enacted—which may exempt new construction from the rent control caps—permits were up 68%.{{ cite news | url=https://reason.com/2022/03/22/politicians-scramble-to-define-amend-repeal-the-nations-most-controversial-rent-control-law/ | title=America's Most Controversial Rent Control Law Is Getting a Hasty Makeover - A collapse in new development activity followed St. Paul voters' approval of a strict, vaguely written rent control ordinance. City and state officials are scrambling over how best to fix the new law. | last=Britschgi | first=Christian | newspaper=Reason | date=2022-03-22 | quote=Tomorrow the St. Paul City Council will discuss the details of implementing Question 1, a brief, voter-passed ordinance that caps annual rent increases at 3 percent and which includes none of the typical exemptions or allowances for new construction, vacant units, or inflation. ... California and Oregon policies also include a number of other exemptions to their state-level rent control laws. They allow property owners, up to a point, to add inflation to allowable rent increases. They both allow landlords to raise rents as high as they want between tenants and have higher caps on rent increases: 5 percent in California and 7 percent in Oregon. }}{{ cite news | url=https://www.minnpost.com/state-government/2022/03/minnesota-senate-committee-moves-bill-to-retroactively-cancel-rent-control-measures-passed-by-voters-in-minneapolis-st-paul/ | title=Minnesota Senate committee moves bill to retroactively cancel rent control measures passed by voters in Minneapolis, St. Paul | last=Callaghan | first=Peter | newspaper=MinnPost | date=2022-03-16 | quote=Draheim also cited Census Bureau statistics that show requests for housing permits has fallen 80 percent in St. Paul since the passage of the referendum. In Minneapolis, which hasn't drafted an ordinance yet and where new buildings could be exempt from caps, permits are up 68 percent. }}

{{portal|Housing}}

• Affordable housing
• Freedom of contract
• Inequality of bargaining power
• Housing inequality
• Just cause eviction
• NIMBY
• Public housing
• Subsidized housing
• YIMBY movement

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{{ cite news | url=https://www.scpr.org/news/2014/09/12/45988/la-rent-has-rent-control-been-successful-in-los-an/ | title=LA Rent: Has rent control been successful in Los Angeles? | last=Bergman | first=Ben | publisher=Southern California Public Radio | date=12 September 2014 | access-date=4 December 2018 | archive-url=https://web.archive.org/web/20140913210438/https://www.scpr.org/news/2014/09/12/45988/la-rent-has-rent-control-been-successful-in-los-an/| archive-date=13 September 2014 | url-status=live }}

{{ cite news | url=https://www.npr.org/2019/02/27/698509957/oregon-set-to-pass-the-first-statewide-rent-control-bill | title=Oregon Set To Pass The First Statewide Rent Control Bill | last=Ingber | first=Sasha | publisher=NPR.org | date=27 February 2019 | access-date=6 March 2019 | archive-url=https://web.archive.org/web/20190306033623/https://www.npr.org/2019/02/27/698509957/oregon-set-to-pass-the-first-statewide-rent-control-bill | archive-date=6 March 2019 | url-status=live }}

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{{cite news | url=https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/ | title=Rent-control policy 'likely fueled the gentrification of San Francisco,' study finds - As California debates rent caps, economists offer a cautionary note. | last=Murphy | first=Katy | newspaper=The San Jose Mercury News | date=2 November 2017 | access-date=7 August 2018 | archive-url=https://web.archive.org/web/20180104192451/https://www.mercurynews.com/2017/11/02/rent-control-policy-likely-fueled-the-gentrification-of-san-francisco-study-finds/ | archive-date=4 January 2018 | url-status=live }}

{{ cite news | url=https://www.bizjournals.com/sanfrancisco/news/2017/11/09/stanford-rent-control-gentrification-costa-hawkins.html | title=Rent control linked to gentrification in San Francisco, Stanford study says | last=Truong | first=Kevin | publisher=American City Business Journals | date=9 November 2017 | access-date=1 December 2018 | archive-url=https://web.archive.org/web/20181202001317/https://www.bizjournals.com/sanfrancisco/news/2017/11/09/stanford-rent-control-gentrification-costa-hawkins.html | archive-date=2 December 2018 | url-status=live }}

{{cite news | url=https://www.sfgate.com/bayarea/article/Rent-control-in-San-Francisco-likely-spurred-12330161.php | title=Rent-control policies likely 'fueled' SF gentrification, Stanford economists say | last=Robertson | first=Michelle | newspaper=San Francisco Chronicle | date=3 November 2017 | access-date=7 August 2018 | archive-url=https://web.archive.org/web/20171203041537/https://www.sfgate.com/bayarea/article/Rent-control-in-San-Francisco-likely-spurred-12330161.php | archive-date=3 December 2017 | url-status=live }}

{{cite magazine | url=http://www.governing.com/topics/urban/gov-landlords-rent-control-stanford.html | title=Does Rent Control Do More Harm Than Good? - A new study suggests that policies meant to keep rents down actually jack them up overall, reduce the rental stock and fuel gentrification. | last=Delgadillo | first=Natalie | magazine=Governing | date=14 February 2018 | access-date=7 August 2018 | archive-url=https://web.archive.org/web/20180222004256/http://www.governing.com/topics/urban/gov-landlords-rent-control-stanford.html | archive-date=22 February 2018 | url-status=live }}

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{{ cite news | url=https://www.gsb.stanford.edu/insights/rent-controls-winners-losers | title=Rent Control's Winners and Losers - With rents going through the roof in hot cities, the hunt is on for a better way to protect tenants from being priced out of their homes. | last=Andrews | first=Edmund | publisher=Stanford Graduate School of Business | date=2 February 2018 | access-date=11 December 2018 | archive-url=https://web.archive.org/web/20180309224803/https://www.gsb.stanford.edu/insights/rent-controls-winners-losers | archive-date=9 March 2018 | url-status=live }}

}}

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{{Real estate}}

{{Authority control}}

Category:Affordable housing

de:Mietvertrag (Deutschland)

fr:Contrôle des loyers