The pricing signal malfunctions when homeowners and landowners control land use to such a degree that regulatory constriction stops housing. Usually this is zoning as the primary blocker, but there can be other blockers too.

One of the problems with rent control is that it pushes the class politics so that renters with housing act more like landowners than they do new tenants, and they conspire to also block housing. People are change averse, even if they don't mind the change after they see it; before the change it's a big threat. This hurts any tenant that needs to move due to things such as becoming an adult, finding a new job, starting a family, getting a divorce or ending a relationship, etc.

Rent control is great as a tenant protection to prevent evictions via rent increases, but it is only a short term protection for tenants otherwise, and can hurt tenants greatly if there's not enough building.