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this doesn't impact new buildings (only buildings older than 15 years old), its impact on housing creating is miniscule compared with the regulatory barriers of
by tmh79 7y ago
this doesn't impact new buildings (only buildings older than 15 years old), its impact on housing creating is miniscule compared with the regulatory barriers of zoning and cost barriers of impact fees and construction costs.
- 0xEFF 7y agoThe value of a new building is lower because it’s expected future value is lower.
- tmh79 7y agoThe value of a new building (for finance purposes, IE getting a loan for construction) is based on the DFCF over the next 15 years, this is an industry standard. This rent control implementation doesn't start until the building is 15 years old, it will not impact real estate finance for new buildings.
- 0xEFF 7y agoMy point is when the new building is sold after being built and rented up, it’s value to a buyer is lowered by the rent control.