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Why is it rent-control OR building new apartments? Houses don't appear immediately and isn't it a good idea to keep people in their homes while the supply grow
by tj-teej 7y ago
Why is it rent-control OR building new apartments?
Houses don't appear immediately and isn't it a good idea to keep people in their homes while the supply grows (building new houses) and the economy stabilizes?
- aeternus 7y agoNo, because rent-control disincentives new development.
- cj 7y agoHow so? Many rent control policies exclude new development from rent control.
- krapht 7y agoIf I buy a property to rent out, the net present value to me is lessened due to rent control. If (x = net present value) < (y = cost to develop) then I don't build.
- refurb 7y agoIt drives prices higher making building new building less profitable. And more importantly, disincentivizes maintenance and upgrades to older buildings.
- otterley 7y ago> isn't it a good idea to keep people in their homes while the supply grows Maybe, maybe not. It seems like a foregone conclusion among many people, but isn't backed by evidence or data.