4 ms·
nany rent control laws only limit the possibility for the landlords to increase the rent on existing contracts. Their main objective is to avoid that tenants be
by occamrazor 8y ago
nany rent control laws only limit the possibility for the landlords to increase the rent on existing contracts. Their main objective is to avoid that tenants be “priced out” of their own apartment and forcibly evicted. Considering the large negative externalities of evictions, there are good reasons to argue that some form of rent control is good for the society at large, even if it causes some distortion in the real estate market.
On the other hand, to provide _new_ affordable housing the only long term solution is an increase in the stock of buildings available for rent.
- JamesBarney 8y agoWhat are the large externalities to rental contracts ending?
- floatrock 8y ago"rental contracts ending" is a cute way of saying "evictions" and a way that allows you to mentally distance yourself from the messy gooey people problems that arise -- grandma getting thrown out on the street, communities being disrupted, etc. I'm generally against rent control, but I still acknowledge that housing is more than a technical business contract. It IS exactly just that to some people, but if you refuse to acknowledge the people on the other end, the only people you're going to bring to your side are your buddies at the country club.
- JamesBarney 8y agoEviction is a very specific legal process which is different than a rental contract ending. It's what happens if I don't vacate a property once the rental contract ends.
- westbywest 8y agoLegal expenses, if the eviction sees court challenge. Especially if any claims of discrimination are sustained against the landlord. Also, labor cost of emptying the unit, repair/cleaning to make the unit ready for a new tenant, etc. Folks being evicted usually aren't in a cheery mode about it, so stuff might get broken.
- JamesBarney 8y agoI don't think those are externalities because the two parties to the contract are the ones bearing the majority of the costs.
- abecedarius 8y agoAren’t the costs of evictions borne primarily by the two parties? I’m not saying there are no externalities, but that’s not the same as "evictions are expensive", and you have to weigh them against the costs of the alternative.
- deleted 8y ago[deleted]
- occamrazor 8y agoFor example the tenant has to take days off work and use them for moving (or for court hearings) instead of productive work. The government has to pay the judges, or the police for a forced eviction. Legal clinics use their scarce time. The tenant may become homeless (homelessness is often considered as an issue with strong negative externalities).