4 ms·
Would you also remove rent control in San Francisco then? (Rent control was added after Prop 13 on the argument that landlords should pass through their fixed p
by boulos 8y ago
Would you also remove rent control in San Francisco then? (Rent control was added after Prop 13 on the argument that landlords should pass through their fixed price benefits).
I would replace today’s rent control (based on building date) with a means-tested rent subsidy, and similarly replace Prop 13 with a means-tested property tax subsidy. This is what a lot of places do (e.g., several counties in New York state) and you don’t end up with the distortions or arbitrary cutoffs.
- hedora 8y agoCounterintuitively, (at least as implemented in most of the bay area) rent control increases the cost of rentals on the market by reducing supply (since it allows people that pay way below market to stay in housing that would otherwise be available for someone else). So, getting rid of rent control is kind of independent of the prop 13 thing. Both would depress the costs of the available units at the expense of long-time residents.
- nordsieck 8y ago> rent control increases the cost of rentals on the market by reducing supply (since it allows people that pay way below market to stay in housing that would otherwise be available for someone else) More importantly (when it comes to increasing the cost of rentals), rent control discourages new construction by reducing it's profitability (easy to see with a discounted cash flow[0] analysis). [0] https://en.wikipedia.org/wiki/Discounted_cash_flow https://en.wikipedia.org/wiki/Discounted_cash_flow
- xivzgrev 8y agoDiscouraging new construction? If you are referring to San Francisco that is not correct. Here rent control only applies to building built before 1979. http://homeguides.sfgate.com/san-francisco-rent-control-information-43270.html http://homeguides.sfgate.com/san-francisco-rent-control-info...