Landlords in Madrid and Barcelona screen renters amid rent control, Luis Garicano notes

Landlords in Madrid and Barcelona screen renters amid rent control, Luis Garicano notes
Rent control leads to renter screening

Landlords in Madrid and Barcelona are now screening renters, according to Luis Garicano. Garicano stated that, as a direct outcome of rent control policies, the most vulnerable individuals—who are ostensibly protected by the legislation—are, in reality, excluded from the rental market if they cannot be evicted for non-payment.

Garicano has commented on a range of economic and policy issues in recent months. He previously argued that chef José Andrés offers clear explanations of economic topics relevant for lawmakers in a recent analysis. In another note, he assessed that AI-related data center investments would require annual revenue equal to about 9.2% of projected 2032 GDP for owners to break even, according to his estimates.

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