Yup, it incentivizes the landlords to maximize increases.

I bought a house in October of '21, I had been renting an apartment for $1,800 a month. My mortgage is just over $2,000 and is locked in for 30 years.

I looked up my old apartment for funsies recently… $2,300 a month.

Which tracks…

$1,800 in 2021. 2022 - 9.9% increase +$178.2 = $1,978.2
2023 - 14.6% increase +$288.82 = 2,267.02
2024 - 10% increase +$226.70 = $2,493.72