Similarly, I see a problem wrt tenants' rights where it becomes so difficult to evict a tenant that no landlord will take a risk on someone who appears to be even slightly risky. It ends up with hordes of unhoused people at the bottom of the "desirable tenant" spectrum getting bumped onto the street in affluent cities, because no landlord will take a chance on the middle, let alone the bottom. Again, obviously tenants need rights, but it seems like many jurisdictions have overshot the sweet spot.
These things are so complex and have so many facets. I'm not confident that excessive tenants' rights are truly a problem, but I it's possible.