No. Rent control does lead to shortages. I have about $6 million to invest in rental properties. San Francisco is not being considered. I'm actually liquida

No. Rent control does lead to shortages. I have about $6 million to invest in rental properties. San Francisco is not being considered. I'm actually liquidating all my California assets, as the INCENTIVE to operate rentals has been destroyed. Have a read of this: "Due to Rent Control, S.F. Has 31,000 Vacant Housing Units As Frustrated Landlords Give Up" The Bay Citizen -- "In San Francisco, one of the toughest places in the country to find a place to live, more than 31,000 housing units — one of every 12 — now sit vacant, according to recently released census data. That’s the highest vacancy rate in the region, and a 70 percent increase from a decade ago." The reason? The city's pro-tenant, outdated rent control laws that make it difficult to raise rents or evict a tenant. "Increasingly, small-time landlords are just giving up, like one who has left two large apartments on the second and third floors of her building vacant for more than a decade, after a series of tenant difficulties. It’s just not worth the bother, or the risk, of being legally tied to a tenant for decades. “Vacancy rates are going up because owners have decided to take their units off the market,” said Ross Mirkarimi, a progressive member of the Board of Supervisors. He attributes that response to “peaking frustrations in dealing with the range of laws that protect tenants in San Francisco that make it difficult for small property owners to thrive.” Perversely, that is hurting the city’s renters as well, as a large percentage of the city’s housing stock is allowed to just sit vacant, driving up rents that newcomers pay for market-rate housing." MP: As we know from basic economic theory, rent control laws are doomed to fail with many predictable unintended consequences in the long run: fewer new rental units are built or made available, many apartments are removed from the market, a decline in the quality of housing, lower rental rates for long-term tenants but much higher rents for new tenants, inefficient use of housing space, etc. In other words, rent control laws guarantee that there will be less affordable housing in the long run, not more. PRICE CONTROLS CAUSE SHORTAGES. When there is no incentive to produce a good or a service, 2 things happen: 1) the SUPPLY of the good or service will drop (no incentive to produce) 2) if the DEMAND stays the same or goes HIGHER (San Francisco demand for rental units) -- the price will go up for the reduced SUPPLY of the good or service. That's why SF has high rents. Huge demand. No investment in affordable rentals. ZERO. Thus, SUPER HIGH rents. Same in NYC. - See more at: http://mjperry.blogspot.com/2011/05/because-of-rent-control-sf-has-31000.html#sthash.tva6Hdad.dpuf http://mjperry.blogspot.com/2011/05/because-of-rent-control-...