4 ms·
This is almost irrelevant if they don’t get the supply issues worked out.
by jrs95 9y ago
This is almost irrelevant if they don’t get the supply issues worked out.
- jedberg 9y agoWhy would I build new supply if I'm going to be stuck renting it out under rent control? If I already own a property, how can I build more if I can't raise rents on my current properties to market rates so I can afford to build new buildings at market rates? Rent control causes supply issues. Look at the City of Berkeley. Their supply increased massively right after rent control was lifted in 1997.
- hcknwscommenter 9y agoNew supply is NOT subject to rent control in any way shape or form. Only non-single family housing that was built before 1979 (or maybe 1980) has rent control. Nothing built after that is rent controlled at all.
- charleslmunger 9y agoThis is sort of true, but in practice (in the bay area) new construction only happens at the whims of neighbors. Since rent controlled tenants are totally insulated from supply and demand, it's common for tenants to only evaluate their annoyance with new construction, and not the beneficial effects on the rental market. Renters can only be NIMBYs even they're locked in by rent control.
- Decade 9y agoDon’t count on it. https://alamedasun.com/news/appeal-costa-hawkins-rent-control-horizon https://alamedasun.com/news/appeal-costa-hawkins-rent-contro...