Cato Podcast The Flaws of Rent Ceilings
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Mar 26, 2026 Jeff Miron, VP for Research at the Cato Institute and former Harvard economist who studies housing policy. He explains how strict rent caps can shrink rental supply, reduce maintenance, and shift units out of the market. He also discusses vacancy decontrol, conversions to condos and short-term rentals, and why targeted vouchers and more housing supply are better alternatives.
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Miron's Cambridge Consultancy Influenced Repeal
- Jeff Miron consulted in the 1990s for small Cambridge property owners to study rent control effects and testified before the legislature.
- His report was cited by repeal advocates and influenced the effort to end local rent control.
Inflation Indexed Rent Caps Create Binding Shortages
- Rent caps at inflation (or 5%) bind when local demand rises or during high inflation, creating below-market rents.
- Jeff Miron explains this forces shortages, longer tenancies, and landlord responses like reduced upkeep and stricter tenant screening.
Rent Control Drives Conversions And Loss Of Rental Stock
- Rent control shifts the housing stock rather than only reducing new builds: landlords convert rentals to condos, short-term lets, or owner-occupation.
- Rebecca Diamond's San Francisco study found a 15% drop in rental supply after expansion of controls.