4 ms·
Hmmm, rent control has some problems, but your critique is missing a pretty big part of the picture. We need to look at what the average rents are, not the ave
by tryitnow 11y ago
Hmmm, rent control has some problems, but your critique is missing a pretty big part of the picture.
We need to look at what the average rents are, not the average rents of current available units. Rent control reduces the former dramatically, but probably increases the latter. In other words, a lot of people are paying a lot lower rent than they would otherwise have to pay, but a lot of non-residents will have to pay higher rents in the future.
I used to be anti-rent control until I thought about both sides of the issue. Rent control can make sense if your goal is to "reward" long time residents, but it may discourage new residents. From a policy perspective you have to ask yourself "Does our city have a problem attracting new residents." SF does not have this problem. But there is a problem of long term residents being forced to move. Rent control alleviates the latter problem.
- cowsandmilk 11y agoRent control discourages downsizing, which has ugly effects on the housing market. If you've lived in a 2BR for 12 years while your kid grew up, you cannot rationally downsize to a 1BR. Why? Because the 1BR on the market has a higher rent than what you're paying for your 2BR. Same story with the taxes. You can sell your current place for top dollar and buy a smaller one, but you're going to take a huge hit on the new tax basis. A crucial component in freeing up housing is downsizing in later life, especially as we have the baby boomer generation starting to retire.