“Those who cannot remember the past are condemned to repeat it.” George Santayana 1863–1952
Socialism has never worked.
Rent controls, price controls or any government manipulated pricing will fail.
Most recent item for your thoughtful consideration is the debacle taking shape in NYC.
The folks in New York want to increase the supply of housing, so they want rent controls.
Economic theory predicts that rent control—capping rents below market rates—reduces the supply of rental housing over time. It discourages new construction (lower profits for developers), encourages landlords to convert rentals to condos/owner-occupied units or other uses, and reduces incentives for maintenance, leading some units to deteriorate or exit the market.
Empirical evidence shows this won’t happen under rent control, which should be obvious.
A small sampling to consider:
- San Francisco’s 1994 rent control expansion found that affected landlords reduced rental housing supply by 15%, primarily through conversions to condos and redevelopment. This caused a city-wide rent increase of about 5.1% due to the tighter overall supply
- St. Paul, Minnesota, voters passed a strict 3% annual rent cap in 2021 (initially with no exemptions for new construction). This led to a sharp drop in new multifamily building permits (around 79% in some reports), a decline in property values, and reduced investment.
- Just look a couple hundred miles away…
Live and learn, and if you are smart you learn from other people’s mistakes…
Grab some popcorn and enjoy the show!
Investment advice offered through Convergence Financial, LLC, a registered investment advisor. Legacy Wealth Management and Convergence Financial are two separate entities. Supervised by Convergence Financial, 3919 S. Providence, Columbia, MO 65203
Legacy Wealth Management offers insurance products and services through a separate, unaffiliated insurance platform. These insurance products and services are not offered through, sponsored by, endorsed by, or affiliated with Convergence Financial, an SEC-registered investment adviser.
Convergence Financial provides investment advisory services only. It does not offer, sell, recommend, or receive compensation in connection with any insurance products or services. Any insurance products or services obtained through Legacy Wealth Management are entirely separate from the investment advisory relationship a client may have with Convergence Financial.
Insurance products are not securities, are not investment advisory services, and are not subject to the same regulatory framework as the advisory services provided by Convergence Financial. Insurance products are obligations of the issuing insurance carrier and are not guaranteed, endorsed, or backed by Convergence Financial. Clients are under no obligation to purchase insurance products in connection with any advisory services they receive, and the purchase of insurance products through Legacy Wealth Management is solely at the client's discretion.
The decision to engage with any insurance platform or to purchase any insurance product is the client's alone. Clients should evaluate insurance products independently and may wish to consult with appropriate professionals before making any insurance-related decision.
Disclosures:
SEC Profile
Form ADV Part 2A Disclosure Brochure
Convergence Financial Customer Relationship Summary
Privacy Policy
Charles Schwab Customer Relationship Summary
Copyright © 2026 Legacy Wealth Management