Earlier quoted context omitted.
No, actually it's rent control that gives way to that. Landlords don't rent at a loss, and prefer keeping their apartments empty, resulting in shitty communities, then squatters, etc.
Both mechanisms seem somewhat plausible. Either of you got any evidence about how often each actually happens?
Now that I think about it further, it seems obvious that rent control would be a tool that can be used by a municipality to control rents in either direction, depending on their goals.