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Hum, interesting. I think of rent control differently, but maybe the way you describe it is what is normally meant. When I hear rent control, I hear controlled
by didibus 10y ago
Hum, interesting. I think of rent control differently, but maybe the way you describe it is what is normally meant.
When I hear rent control, I hear controlled increase in rent over time for existing rental units. You make sure all rental units are profitable, but you protect existing tenants from being able to afford their rent to not being able to in a year, simply because a neighborhood has increased in desirability. So you force the market to either build new construction to profit from the boom, or to make remodeling to old buildings to justify rent increase.
- PrimalDual 10y agoThe point is that you still end up misallocating housing units. The marginal Googler at San Francisco may end up taking a lower paying job elsewhere in the country reducing overall productivity. If the renter moves because they can't afford the rent they may find a place where costs are more favorable to their earnings. It's part of the difficult changes introduced by market-based economies but I thought the consensus was that in the long run everyone benenfits.
- superuser2 10y agoYou protect existing tenants from new tenants. Existing units leave the equation for people moving or coming of age, who face much higher prices than they would if they were allowed to compete with existing residents.