7 ms·

I was under the impression that some rents can be increased during the lease. I do not think it is only a renewal event, by law. > Rent control deters the crea

I was under the impression that some rents can be increased during the lease. I do not think it is only a renewal event, by law. > Rent control deters the creation of new housing. I keep seeing this repeated but I don't understand. Why does rent control deter creation of new housing? > This reduce in supply raises the price But you've glossed over why supply is reduced. I don't see any reason that supply would be reduced with basic moderate rent control like this one. Edit: I have tripped some wire (?) and am not allowed to post any more. In response to the comment below, > https://www.google.com/url?sa=t&source=web&rct=j&url=https://tenantsunion.org/rights/rule-changes-rent-increases&ved=2ahUKEwjPo9nzh8rkAhUNCTQIHUNGD70QFjAFegQICxAU&usg=AOvVaw2s5EfPAjtZv2bNjxTalN9J https://www.google.com/url?sa=t&source=web&rct=j&url=https:/... That seems to be Washington, not California. According to http://www.hrc-la.org/doc.asp?id=36 http://www.hrc-la.org/doc.asp?id=36 it seems to read that some leases allow rent increases mid-lease.

Litmus2336 7y ago
https://www.google.com/url?sa=t&source=web&rct=j&url=https://tenantsunion.org/rights/rule-changes-rent-increases&ved=2ahUKEwjPo9nzh8rkAhUNCTQIHUNGD70QFjAFegQICxAU&usg=AOvVaw2s5EfPAjtZv2bNjxTalN9J https://www.google.com/url?sa=t&source=web&rct=j&url=https:/... I believe you might be thinking of month-to-month, which is not a traditional lease. On all fixed term leases over a month rent cannot be changed during the term of the lease.
- phil248 7y ago
  Which is an oddly elaborate way of saying that rent increases in California can happen annually.
  - Litmus2336 7y ago
    Technically, you can have a lease of any length. I've seen 3 and 6 month leases. I'm sure it's possible to have a 24+ month lease.
aianus 7y ago
> Why does rent control deter creation of new housing? If you have a lot of money and you want to build/buy a rental property, would you do it in a) a growing city with no rent control where your discounted future cash flows are unbounded or b) a city where there is a law placing a ceiling on your returns. All else being equal, you are going to choose the city without rent control to build your new housing units in (or invest in something other than real estate altogether), thus illustrating how rent control disincentives new investment in housing, and specifically low-income rental housing.
- cryptoz 7y ago
  I think your illustration has failed, though, because I would very much choose b). I consider a) as an evil in the world and would avoid participating in that if at all possible. b) sounds like a really good choice for long-term investment in in sustainable society. > All else being equal Okay but all else is not equal, and in the real world, it is never equal. These thought experiments do nothing to improve conditions in the real world, since they are based on flawed models of how people behave.
  - aianus 7y ago
    > Okay but all else is not equal, and in the real world, it is never equal. These thought experiments do nothing to improve conditions in the real world, since they are based on flawed models of how people behave. By that logic, nothing affects anything else and we should all give up trying to think or plan.
    - cryptoz 7y ago
      I don't agree. We know that people are not 'rational actors' that maximize personal profit at every turn, and we should not base our economics around that known false idea. I think it is wise to produce better models with new information - not to ignore everything or to knowingly use false models. People do not - and should not - act according to those 'rational' ideas of maximum profit.
- 0xB31B1B 7y ago

Litmus2336 7y ago

https://www.google.com/url?sa=t&source=web&rct=j&url=https://tenantsunion.org/rights/rule-changes-rent-increases&ved=2ahUKEwjPo9nzh8rkAhUNCTQIHUNGD70QFjAFegQICxAU&usg=AOvVaw2s5EfPAjtZv2bNjxTalN9J https://www.google.com/url?sa=t&source=web&rct=j&url=https:/... I believe you might be thinking of month-to-month, which is not a traditional lease. On all fixed term leases over a month rent cannot be changed during the term of the lease.

phil248 7y ago
Which is an oddly elaborate way of saying that rent increases in California can happen annually.
- Litmus2336 7y ago
  Technically, you can have a lease of any length. I've seen 3 and 6 month leases. I'm sure it's possible to have a 24+ month lease.

aianus 7y ago

> Why does rent control deter creation of new housing? If you have a lot of money and you want to build/buy a rental property, would you do it in a) a growing city with no rent control where your discounted future cash flows are unbounded or b) a city where there is a law placing a ceiling on your returns. All else being equal, you are going to choose the city without rent control to build your new housing units in (or invest in something other than real estate altogether), thus illustrating how rent control disincentives new investment in housing, and specifically low-income rental housing.

cryptoz 7y ago
I think your illustration has failed, though, because I would very much choose b). I consider a) as an evil in the world and would avoid participating in that if at all possible. b) sounds like a really good choice for long-term investment in in sustainable society. > All else being equal Okay but all else is not equal, and in the real world, it is never equal. These thought experiments do nothing to improve conditions in the real world, since they are based on flawed models of how people behave.
- aianus 7y ago
  > Okay but all else is not equal, and in the real world, it is never equal. These thought experiments do nothing to improve conditions in the real world, since they are based on flawed models of how people behave. By that logic, nothing affects anything else and we should all give up trying to think or plan.
  - cryptoz 7y ago
    I don't agree. We know that people are not 'rational actors' that maximize personal profit at every turn, and we should not base our economics around that known false idea. I think it is wise to produce better models with new information - not to ignore everything or to knowingly use false models. People do not - and should not - act according to those 'rational' ideas of maximum profit.
0xB31B1B 7y ago