Rental caps are not the problem when it comes to misallocation of apartments. The opposite is true. Rental caps provide a way for all types of families and people to find good housing for a lower price. Without having houses or properties having stacked prices, it gives opportunities for more people to find homes.
Having families stay in singes apartments is probably a better solution than having them stay in bigger rental properties. It’s cheaper for them. If families make less than single people, then single people should have no problem staying in a house that’s bigger than what they need. The whole point of rental caps is to make a cheaper solution for all types of people.
Plus, rental caps aren’t the ultimate solution to having cheaper housing. Rental caps don’t determine how much someone can make. If a family cannot afford a bigger rental property. They should find ways to make more income. If a single person doesn’t have the funds to live in a bigger house, they should move to a different area.