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Rent control helps the well connected, not necessarily those who need it : http://www.wsj.com/articles/SB122126309241530485 http://www.wsj.com/articles/SB12212
by aorloff 10y ago
Rent control helps the well connected, not necessarily those who need it :
http://www.wsj.com/articles/SB122126309241530485 http://www.wsj.com/articles/SB122126309241530485
and ties up existing inventory. I know people here in SF who have an apartment, and own a house or two outside the city, but will never give up their apartment because its just so cheap. Rent control definitely ties up supply.
- btilly 10y agoIn theory, absolutely! In practice the effects seem to be small.
- dietrichepp 10y agoThe evidence presented in the article you linked is really not strong enough to support your conclusion with reasonable certainty. It's using a massive "post hoc ergo proper hoc" fallacy to prop up a weak argument. "Ties up supply" is also a statement that is not necessarily connected to "increases price". I'm not entirely clear on the economic theories behind rent control, but from what I understand, it affects availability more than it affects price.