PILOT SPIN
Spin Zone => Spin Zone => Topic started by: President-Elect Bob Noel on October 30, 2019, 07:19:25 AM
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Calls for Rent Control are happening in Massachusetts (in 1994 we barred rent control via a state referendum).
I'm wondering if people understand what housing costs (property taxes, cost-of-money, building maintenance, etc).
Does California have rent control? What about other areas with extremely high housing costs?
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Calls for Rent Control are happening in Massachusetts (in 1994 we barred rent control via a state referendum).
I'm wondering if people understand what housing costs (property taxes, cost-of-money, building maintenance, etc).
Does California have rent control? What about other areas with extremely high housing costs?
Didn’t DeBlazio recently implement rent control in NYC?
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Remember the "Rent is too damn high" guy? LOL!
Rent control like any artificially mandate government price control is extremely damaging. It forces landlords to not maintain their properties as they can no longer afford to do so. It also stops investors from investing in real estate as their returns are now LIMITED BY GOVERNMENT. Why take the huge risk, if there is little to no upside? Capital will go elsewhere, and the supply of decent rental properties will dwindle.
Who loses? Everyone, but especially the tenant (renter) who can no longer find a decent place to live where they want to live. Artificial government intrusion like rent control is extremely destructive, and destroys the natural market equilibrium of supply and demand.
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Calls for Rent Control are happening in Massachusetts (in 1994 we barred rent control via a state referendum).
I'm wondering if people understand what housing costs (property taxes, cost-of-money, building maintenance, etc).
Does California have rent control? What about other areas with extremely high housing costs?
Yes.
https://reason.com/2019/09/12/california-passes-statewide-rent-control-despite-a-massive-housing-shortage/
Economists and other policy experts have long criticized rent control for reducing the supply and quality of rental housing in the long-run. California's rent control bill is no exception says Michael Hendrix, state and local policy director at the Manhattan Institute.
"What we are going to get is a reason for landlords to convert apartments to condos," says Hendrix. "The net result of that is potentially more units being taken off the market, and long-term this housing crisis getting worse, not better."
Hendrix argues that landlords, when faced with limits on how much they can raise their rents, will simply take their rental units off the market, converting them into condominiums that can be sold at market price.
A study of rent control in San Francisco published in the journal American Economic Review this month found that "while rent control prevents displacement of incumbent renters in the short run, the lost rental housing supply likely drove up market rents in the long run, ultimately undermining the goals of the law."
What the hell is wrong with people. Damn idiots.
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Like any artificially lowered price, the demand increases, supply shrinks and there is a shortage of units. This is a taught in week 2 of any basic micro economics course, right after you learn what supply and demand is.
NYC has many articles written about the effects of it's rent control and it follows this predicted course. Of the city's 3 million rental units, just about 22,000 are rent controlled, but you'll never get one. When the leases expire, they move to "rent stabilized". NYC just changed the rules on this, so it remains to be seen how its going to work out. In general, the number of rent stabilized apartments has been shrinking.
Here's an article from the economics standpoint.
https://www.econlib.org/library/Enc/RentControl.html
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Here's an article from the economics standpoint.
https://www.econlib.org/library/Enc/RentControl.html
interesting read.