Minnesota’s mistake on rent control

Economists don’t need any more evidence that rent control is bad and new housing is good. But they’ll take it. The latest example comes from Minnesota, where the Twin Cities gifted us with a natural experiment: A referendum in St. Paul imposed a draconian version of rent control — a 3 percent maximum increase, even on vacant units and new construction — while Minneapolis made it easier to build housing. The Wall Street Journal just ran a story on the results. From 2022 to 2024, rents in capitalist Minneapolis went up only 0.7 percent, versus 1.8 percent in rent-controlled St. […] This article originally appeared on The Real Deal. Click here to read the full story.