Rent control

The NY mayoral candidate is promising rent control to stabilize the cost of apartments. St Paul implemented rent controls three years ago. Rent control in St. Paul led to a decrease in new apartment construction, with building permits dropping significantly after the ordinance was passed. Multiple sources point to a sharp decline in new housing permits, with one report showing an 80% drop in the months following the ordinance's implementation. The decrease is attributed to developer disincentives caused by rent control, as it impacted the financial viability of new projects and made it harder to secure financing. When builders are told they cannot increase the rent they stop building. People in rent-controlled apartments don’t want to leave and so there is no room for growth. The latest trend is to carve out exceptions to the rules based on approval which opens the door to misadventure by governments colluding with builders.