Yes, unfortunately we have seen examples recently with COVID where municipalities basically offloaded subsidizing rent to landlords by both prohibiting increases and evictions for non-payment. These policies are not part of what’s normally thought of as rent control or rent stabilization ordinances.

Unfortunately, the proverbial cat is out of the bag and we will likely see repeats of such “subsidies”. It’s unclear how it will change the calculations long-term. Short-term, it has already driven the unlucky small landlords out of business and forced surviving to keep greater reserves. This increased reserves need will definitely hamper future development and probably will drive rents up even more due to lack of supply. Large corporate landlords tend to focus on the higher end of the market, but the shortage is in the more affordable price range…