Rent controls, sometimes, have the perverse effect of making the problem of scarcity and affordability worse.
The most recent example of this was seen in Argentina, where a series of stringent rental controls meant landlords preferred to keep their properties empty rather than rent them out and get locked in. At one point, nearly a fourth of Buenos Aires’ properties were left empty, driving home the maxim that good intentions do not work in markets as the latter have their own dynamic.
