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You don’t want to wreck individual lives just because you want efficient price-finding. Rent control that protects tenants from super-nominal price increases wo
by romed 8y ago
You don’t want to wreck individual lives just because you want efficient price-finding. Rent control that protects tenants from super-nominal price increases works fine in the presence of abundant supply and liquidity. You can see how successful this can be in places like Belgium where standard lease is rent controlled for nine years with an option for additional nine years. This is enough time for a family to become established and raise children without being sacrificed on the alter of market signals. It is the kind of policy you get when you view tenants as people rather than revenue sources.
- everdev 8y agoAre individual lives ruined by having to move? I understand the pros and cons of rent control and there are valid arguments on both sides, but it doesn't sound like people's lives are being ruined. IMO, a lot of political and cultural tension comes from tying our identity to a piece of land. Maybe if we moved around more often we might be more tolerant of new cultures and people?
- romed 8y agoThis attitude is why American cities aren’t real places. Yes, being forced to move far away, as in the Bay Area where we evict people from Oakland and expect them to live in Antoich, is highly disruptive to lives. It severs friendships, increases travel, and all manner of negative effects.
- mijamo 8y agoIt does. I know several kids who suffered severe depression because they had to move far away several times and had no real friend, no feeling of belonging, no home.
- JamesBarney 8y agoWhy does an increase in rent wreck people's lives? Also what does super nominal pricing mean? And anyone can sign a lease for 9 years. But the vast majority of tenants do not want to make a commitment for that long. And they could also sign a lease with an option to renew for up to a number of years similar to a commerical lease. But again no-tenant wants to pay the option cost.
- romed 8y agoNo landlord in America will give you a nine-year lease on residential property. You need the power of law to step in and set those boundaries. Super nominal: greater than the rate of general inflation.
- westbywest 8y agoLeases aren't offered with such flexibility in markets where the supply of available housing is small. I'm also interpreting "available" to mean available at a resident's income level, i.e. overlapping with "affordable." You sign the lease that's offered, or it goes to next candidate tenant.
- stickfigure 8y agoRent control...works fine in the presence of abundant supply and liquidity In other words, rent control has no effect if prices would have remained stable anyway. It's also pointless in that case.
- romed 8y agoSure, but the point is that rent control removes the incentive that would otherwise exist for landlords to create scarcity.