ABSTRACT
The decision of the United States Supreme Court to uphold the constitutionality of rent control ran contrary to a long line of decisions invalidating price regulations. State and local governments in the United States are able to enact rent control under the authority of the “police power” inherent in government to protect the general welfare. The most serious constitutional challenge raised against rent control has been the claim that it constitutes a taking of property, based on a denial of a fair return. The thorny problem of what constitutes a “fair return” on investment in the housing market is at the heart of the judicial dilemma in dealing with rent control takings. The courts have dealt with many procedural issues related to the standards for review of landlord petitions for rent increases that they claim are necessary to guarantee a fair return. A different basis for landlord opposition to rent control is the control of property by its owners.
