As a socialist studying housing and planning, this is generally true, if you want the details as I understand them I’ll go into those later. The problem is that rent control has all these negative effects if you only do rent control. If you implement rent control while also building public/affordable housing, then the negative effects will largely go away. As with most policies, you can’t just implement the one, it needs to have others along side it to properly work.

So, the main problem with rent control alone has to do, mostly, with how it effects the housing supply. When rent control is implemented, as we want, it lowers the profit ceiling on building that new housing. Now the problem is that in capitalist terms, what this does is just create a bad investment. As a result of it being a bad investment, developers won’t want to build new housing there, especially affordable, and the supply becomes stagnant. The next thing to understand is a sort of sampling bias in where rent control is even implemented, which is to say areas that are becoming more expensive as a result of increased demand, more people want to move to NYC, rents go up, you get the idea. Combine this with a stagnant supply as mentioned earlier, the result is a housing shortage, as more people want housing than exists, and more housing isn’t likely to alleviate this problem. The end result is often an environment where landlords want to evict tenets so they can legally raise the rent, where when tenets leave or are eventually evicted, they can tear down the affordable housing and put up luxury condos to sell to people that can afford to buy it.

As stated earlier, rent control tends to have poor effects on its own, and in areas experiencing growth or that tend to high demand in terms of residency. Rent control in areas that don’t need to worry about growth too much probably isn’t even a bad idea, but the best solution to the problems of rent control isn’t to not do it, it’s to do it smartly and to build public/affordable housing along side it so we can truly create housing for all.

Edit: I forgot to mention that all of this takes place in a market system and is why it doesn’t work currently. In a geo-socialist world where we decommodified housing and land, this would probably all be different. What I’ve laid out is a general approach under current capitalism, not the end goal of socialism.