The main problem with regulation is zoning and NIMBY-driven development. Building codes drive up costs but zoning makes building impossible. I agree that inter

The main problem with regulation is zoning and NIMBY-driven development. Building codes drive up costs but zoning makes building impossible. I agree that interest rates have a huge impact on overpriced houses, but it's not such a direct correlation to rent prices. In SF there basically is no construction but there is huge demand for rent. In other areas there is demand for expensive construction for "investment", but nobody actually rents there. In China this has led to entire ghost cities full of empty highrises. Investors are speculating that rising prices will take care of the missing rent income - and they will, at least until the next bust comes. The situation where rent competition exists alongside building investment can only exist when both of these factors are eliminated. Interests rates need to rates. Zoning and NIMBY must go.