It seems you either don't know how rent control actually functions, or you're arguing based on what you want it to be, instead of what it actually is. Because it irrefutably does discourage people from sorting into housing efficiently. What someone is willing to pay for rent should reflect how much a person values what that rental gets them. This value is distorted by rent control and leads to ineffective use of housing stock. As I said, this applies during time to renew a controlled lease or to move. A family of 5 has all of their children move out, but the unit is rent controlled? No point ever downsizing even if they have little use for the two spare rooms, because changing to a smaller unit will end up costing more for them as new tenancy lets a new rent level be set. A young couple starts having children? They decide not to move from their rent controlled 1 bedroom place even though they could use more space. A person gets a new job that they would otherwise move closer to, reducing their commute, but they don't want to move and lose a rent controlled unit. These distortions are widespread.
"Rent control everything" is nonsensical. If everything in a market is rent controlled, then everyone pulls out of the market and fewer units will be available to renters, and I'm sure even you will agree what happens to price of a good when supply drops. This is why new developments are exempted: nothing would be built otherwise.
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