Argentina Offers a Textbook Study in Why Rent Controls Are a Bad Idea

Recommendable! Don't cry for me Argentina! Government price/wage/rent controls are bad ideas. Government overregulation as well! The so euphemistically called unintended (but well known) consequences are much worse most of the time!

The article is premature as the effects of deregulation on the residential housing market in Argentina are still to be forthcoming.

"... A form of tenancy rent control was introduced in Argentina in 2020 – and many British and American progressives would like to do the same. Tenancies were mandated to a minimum length of three years and permissible annual rent increases were capped at a weighted average of inflation and wage growth. Both measures aimed to provide tenants with more economic ‘security’. Landlords were still free to adjust rates between contracts, but ending tenancies prematurely was basically impossible. Deposits were capped, while rents themselves had to be paid in pesos. ..."

Argentina Offers a Textbook Study in Why Rent Controls Are a Bad Idea | Cato Institute Milei took his chainsaw to rent control and other tenancy regulations. The result has vindicated economic theory: the supply of rental accommodation is surging and rents have tumbled. In his ascent to Argentina’s presidency, Javier Milei was distinguished not just by his libertarian ideology but also for his pedagogic approach towards economics. On the campaign trail, he would regularly articulate the basic principles of market economics.