3 ms·
> Supply and demand is one of the simplest concepts in economics That's what makes it one of the weakest. The housing market does not follow a standard supply-
by cryptoz 7y ago
> Supply and demand is one of the simplest concepts in economics
That's what makes it one of the weakest. The housing market does not follow a standard supply-demand curve for a number of reasons.
> Rent control has never been good anywhere.
Citation needed. Rent control has helped a lot of people find stability in a time of need, enabling less trauma, stress and improving chances of class mobility.
> In fact, it decreases supply by not shifting prices higher to induce more production.
Is this a real effect that you can measure in the real world? Has this ever happened in reality before? Or is this a theoretical concept? One that you assume plays out under ideal circumstances and that I assume are never met in real life?
- kortilla 7y ago>The housing market does not follow a standard supply-demand curve for a number of reasons. That would make it the first in history. Extraordinary claims require extraordinary evidence. >Rent control has helped a lot of people find stability in a time of need So has the lottery. Doesn’t mean it’s not bad overall. The massive portion of people that don’t hit the rent control lottery (I.e. anyone who has to move) get screwed and the whole middle and upper class gets screwed by a poorly incentivized supply. >Is this a real effect that you can measure in the real world? Yes. Look at any place where there is rent control and you will find it still has unaffordable prices often far above the national average. It has never been a net good for society. It doesn’t increase housing supply and the pigeon hole principle should be simple enough for you to understand what that means.