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Why would living in a rent-controlled dwelling incentivize a tenant to constrain supply? If a new building goes up next door to me it's not going to make my ren
by jgwil2 6y ago
Why would living in a rent-controlled dwelling incentivize a tenant to constrain supply? If a new building goes up next door to me it's not going to make my rent go up.
- bhupy 6y agoRent-control doesn't incentivize a tenant to constrain supply. Tenants are incentivized to vote for rent control (for obvious reasons), and rent control has the unintended consequence of restricting supply — on average developers construct less housing in markets with rent controls than those without, relative to the demand. https://www.nber.org/papers/w24181 https://www.nber.org/papers/w24181
- AnthonyMouse 6y agoNot only that, once the sum of property owners and tenants in rent-controlled apartments is a majority of the local population, there is no longer majority support for policies that lower market rate housing costs, because the tenants in rent-controlled apartments don't pay the market rate for housing.