Should Rent Be Capped to Tackle the Cost-of-Living Crisis?

I believe the cost-of-living crisis requires intervention without destroying the free market. People should be free to buy property at any price they choose, but rent should not be allowed to rise without limits where housing supply is scarce. Housing does not correct itself like many other markets because buildings are fixed in location and new supply takes time. Scarcity, whether natural or artificial, can leave tenants exposed to excessive rent increases. One option is to value rental property mainly by construction cost, excluding land value, and cap annual rent at a reasonable multiple of that cost. Without measures like this, workers may earn higher wages but still spend an unsustainable share of their income on rent.

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