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 2 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? Economists have expressed concerns that rent control can lead to unintended consequences, such as reduced investment in rental properties and decreased incentives for landlords to maintain and improve their buildings. "Rent control is a well-intentioned policy, but it's a blunt instrument that can have negative effects on the housing market," said Mark Zandi, chief economist at Moody's Analytics. "It can lead to a shortage of available housing, as landlords are less likely to rent out their properties if they're not allowed to raise rents." Proponents of rent control argue that it is a necessary measure to address the city's affordability crisis. "Rent control is a vital tool in the fight against gentrification and displacement," said Zohran Mamdani in a statement. "It will help to protect tenants from unaffordable rent increases and ensure that they have a stable place to live." However, economists point out that rent control can have a limited impact on affordability, as it only applies to a small portion of the city's rental stock. The policy has been met with skepticism by many in the real estate industry, who argue that it will lead to a shortage of available housing and increased costs for tenants in the long run. "Rent control is a recipe for disaster," said Steven Spinola, a former president of the Real Estate Board of New York. "It will lead to a shortage of available housing, as landlords are less likely to rent out their properties if they're not allowed to raise rents." New York City Mayor-elect Zohran Mamdani's policy is set to take effect in the coming months, pending approval from the state legislature. The policy's impact will be closely watched by economists, policymakers, and tenants alike, as it seeks to address the city's affordability crisis.