In 2017, the Liberal Government in Ontario decided to expand rent controls beyond apartments built before 1993 to cover all apartment buildings. The housing industry objected, and argued that expanded rent controls would discourage new apartment construction by reducing profitability.  All other things equal, that is a reasonable economic argument.

The Ontario Housing Minister responded, pointing out that the planned rental units that were now going to be converted to (more profitable) condos were in the downtown Toronto core, and were unlikely to have been affordable anyway (for most tenants). More importantly, he noted that over the last 10 years, before rent controls were expanded, almost no apartment buildings were constructed anyway.

The video has an extended discussion of the intersection of politics and economics in public policy debates.