ABSTRACT
In this chapter, the authors are particularly concerned with the effects of rent control on the size of the stock of housing and who actually received the available stock. In other words, they will use case studies to show the effects on the amount and efficiency in the use of housing space when rent controls are applied. In contrast to the shortage of 1906, Friedman and Stigler examine the housing shortage of 1946 which was nationwide and included San Francisco. Because of the migration westward it was worse than average. Friedman and Stigler emphasise that the housing shortage of 1946 did not pass unnoticed. On 8 January 1946, the Governor described the housing problem as ‘the most critical problem facing California’. At all times during the acute ‘shortage’ of housing in 1906, Friedman and Stigler point out that inexpensive flats and houses were available.
