CAPE TOWN - As rental costs climb in Cape Town, calls for rent control are growing louder, but warnings are just as strong.
Economists say capping rental increases could backfire, discouraging new developments and pushing landlords out of the market.
That could shrink an already limited housing supply and drive prices even higher in the long run.
Opponents argue that global evidence shows rent control often benefits existing tenants while locking future renters out.
While the affordability crisis is real, critics insist the solution lies in speeding up construction, releasing more land, and expanding social housing.