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The same thing will happen there as has happened in California. Landlords exit the market, developers stop building new housing, and ten years later you have a
by Causality1 7y ago
The same thing will happen there as has happened in California. Landlords exit the market, developers stop building new housing, and ten years later you have a housing crisis twice as bad as the current one.
- lostdog 7y agoRent control doesn't apply to new construction in California.
- WalterSear 7y agoRequiring a portion of builds be below market rate is an equivalent disincentive from builders perspective.
- lostdog 7y agoInteresting point. It would only apply to the 15%-25% of below-market-rate units, so yes it would reduce supply, but not as much as making the entire building rent controlled (or below market rate).
- WalterSear 7y agoBuilding is quite a risky proposition, mostly due to the large investments required, the time to recoup them, and the uncertainty of the costs. Delays and unforeseen issues quite often turn a construction into a money-losing venture. Once those risks are factored in, despite the large return on successful investments, the profits aren't great. So, it doesn't take much to make a proposition unattractive. Luxury apartments tend to be more attractive to builders not simply because they can make more money, but because the increased profit result in lower risk.