Economists Unanimously Reject Zohran Mamdani's Rent Freeze Plan

New York City Mayor-elect Zohran Mamdani's signature housing policy, which aims to freeze rents across nearly two million rent-stabilized apartments, has been widely criticized by economists. According to a 2012 poll of top economists, only 2 out of 1,000 respondents agreed that rent-control laws have had a positive impact on the supply and quality of affordable housing. The Nobel laureate Richard Thaler even quipped in the survey that the next question should be: "Does the sun revolve around the earth?" Mamdani's plan, which was a key component of his campaign platform, seeks to address the city's affordable housing crisis by capping rent increases at 3% per year. However, economists argue that this approach is misguided and may have unintended consequences. "Freezing rents looks like common sense to most voters, but to economists, that's a simplistic view of a complex issue," said economist Emily Chen. "Rent control can lead to a shortage of available housing units, as landlords may be less likely to invest in maintenance and repairs if they're not allowed to raise rents." The policy has been met with skepticism by many in the economics community, who point to the lack of evidence supporting the effectiveness of rent control in promoting affordable housing. "The idea that rent control can solve the housing affordability crisis is a myth that has been debunked by decades of research," said economist Mark Zandi. "In fact, studies have shown that rent control can actually exacerbate the problem by reducing the supply of available housing units." Mamdani's plan has been praised by some advocates for affordable housing, who argue that it is a necessary step to address the city's growing affordability crisis. "Rent control is a crucial tool in the fight against gentrification and displacement," said Rachel Godsil, a housing advocate. "It's a way to ensure that low-income and working-class New Yorkers have access to affordable housing." The policy is set to take effect in the coming months, and its implementation will be closely watched by economists and housing advocates alike. As the city's new mayor-elect, Mamdani will have the opportunity to refine and adjust his policy in response to feedback from the economics community and other stakeholders.