Los Angeles has rent control on all apartments built before Oct. 1, 1978, and on mobile home parks whose operating permits were issued before Feb. 10, 1986.
…Generally, the laws allow landlords to raise rents by a limited amount — in many jurisdictions by the amount of the consumer price index. Whenever a unit is vacated, the landlord can reset the rent at market level. But while the unit is occupied, rent increasesare subject to controls.
“That sets a perverse incentive for landlords to charge the highest rent when an apartment is vacated,” said Jon Coupal, president of the Howard Jarvis Taxpayers Assn.
Coupal said the long-term effect of rent control laws is to reduce the amount of affordable housing because developers won’t invest in it.
Also, generally, on price control, here is Thomas Sowell:
Why do price controls cause shortages? There are basically two reasons: supply and demand.
We will talk about supply, demand, and price controls in the next two weeks.
PS: For enthusiasts only, this and this are two NBER papers on rent control.
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