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Of course residents love rent stabilization. They like it for the same reason the rich enjoy greater returns on wealth. Rent control makes housing disproportion
by tathougies 7y ago
Of course residents love rent stabilization. They like it for the same reason the rich enjoy greater returns on wealth. Rent control makes housing disproportionately cheap for those currently living in the city and disproportionately expensive or unavailable for those seeking to move in or youth seeking to move to their own place. In effect, it's a tax on the young and the migrant to subsidize the older, richer, and more entrenched.
- CPLX 7y ago> In effect, it's a tax on the young and the migrant to subsidize the older, richer, and more entrenched. That's not correct. It's a redistribution from landlords to tenants. It's at least possible that there are also dynamic effects on the larger market, of course, but it's intentionally misleading to act like the "tax" is on people that aren't a party to the transaction. The cost/money that would have been captured by the landlord is instead captured by the tenant. The core of the mechanic is pretty straightforward.
- tathougies 7y agoHmm... I count not being able to afford a unit in the city you want to live in, and thus either having to commute (inconvenient) or find work in another city (opportunity cost), to be a kind of tax. Taxation is not just monetary. The landlords are taxed; you're not wrong. But they're not the ones most hurt by these policies.