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Both land-use regulations, and land owners (ab-)using their oligopoly to drive up rents to insane levels, which combined cripple the rest of the economy by prev

• deelowe 11y ago
  Where has rent control ever worked favorably for the cities that have implemented it? It's simple economics, as value is derived from a city, the city itself becomes more valuable. A more valuable city has more valuable real estate. More valuable real estate costs more to purchase and develop. "Location, location, location" isn't just some cliche realtors like to use. In the majority of cases, there's no conspiracy. Rent goes up, because the real value has gone up. It really is that simple.
  • srtjstjsj 11y ago
    Define "real value". Prices are driven my many-to-many auctions, and each market (housing) interacts with its supplements (transportation, food, energy, finance,...). The value varies from person to person, and much of the value is parasitic: I derive value from getting paid by my job, and my home, transport, etc enable me to do that job. If I make $100K/yr, is my home providing $10k/yr of value? Or $40k/yr? If I get a raise, is my home more valuable because it supports my higher income? Or is my transportation more valuable? Or is my food more valuable, as it keeps me healthy?
    • deelowe 11y ago
      Did you skip macro economics? None of this really makes much sense when talking about rent prices in a market driven economy.