Price controls almost always lead to shortages, for the very reasons the author described. If rent control is used to keep prices down, it is self evident that the market clearing price must be higher for those units... otherwise you could just get rid of rent control all together and there would be no side effect.
I guess the real question in my mind is "cui bono?" Seems that this policy would greatly benefit any landlords with non-rent-controlled property, since the artificially low price would create an increase in demand... since the price of those units can't increase the effects would presumably be felt in the next best substitute(s), i.e. free market apartments and/or values in the surrounding areas. Seems like property developers in the both the city and the suburbs might have a strong interest in distorting the market in this way.
If I understood his argument, I think he was saying that only non rent controlled apartments are factored into things like average rental price. So, in this case, the rent controlled properties are basically just not part of the market right now. So his argument was that removing the rent control would more than double the apartments on the market. The price for the rent controlled properties would increase but since they previously weren't being counted, the average price would ultimately drop with the larger supply now available to be bid on in the open market.
I guess the real question in my mind is "cui bono?" Seems that this policy would greatly benefit any landlords with non-rent-controlled property, since the artificially low price would create an increase in demand... since the price of those units can't increase the effects would presumably be felt in the next best substitute(s), i.e. free market apartments and/or values in the surrounding areas. Seems like property developers in the both the city and the suburbs might have a strong interest in distorting the market in this way.