3 ms·
How so? Many rent control policies exclude new development from rent control.
by cj 7y ago
How 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.