ABSTRACT
Evidence of adverse economic impacts of rent control derives largely from older, binding local ordinances of the 1970s. In 2020, the State of California enacted a new rent control law with less binding rent caps among jurisdictions lacking stricter regulations. We use permit, transaction and rental supply data from San Diego to evaluate the impact of this new third generation rent control ordinance. In contrast to earlier analyses, findings indicate that California’s new rent control law had no detectable impact on loss of rental units through stock conversion. Further, we find no evidence of pre-conversion renovations. Results underscore how policy design can avoid supply distortions observed under earlier, stricter rent-control regimes. The findings suggest a potential role for less restrictive rent caps in efforts to enhance housing opportunity.
Gabriel, Stuart A and Sayantani, S, Third Generation Rent Control: Evidence from San Diego. Posted to SSRN 6 March 2026.
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