4 ms·
It all depends on how it's implemented. The usual method of controlling rent is to cap only a subset of properties in an area - for example, leaving new builds
by crumbshot 5y ago
It all depends on how it's implemented. The usual method of controlling rent is to cap only a subset of properties in an area - for example, leaving new builds or new tenancies exempt. Which tends to create a two-tier system that benefits one set of tenants at the expense of the other, while discouraging reallocation for downsizing and suchlike. And as you allude to, without further restrictions on tenancy contract terms, the private landlords will attempt to extract their pound of flesh in other ways.
On the other hand, if rent controls are used as part of a wider strategy to gradually convert private rental stock over to social housing - that is, as a stick to encourage private landlords to sell up to the public sector - along with other measures including more state investment in building such housing, large fines for private landlords leaving their rental properties unoccupied, and so on, then this can be a long-term positive on the overall housing situation.
The end goal should be to remove this wholly unnecessary parasitic landlord class from the housing provision entirely, rather than tinkering around the edges of the problem, as this Berlin measure was doing.
- codekansas 5y agoIn some US cities like Portland the construction costs for public housing are typically double costs for comparable private housing. The government has little motivation or expertise to reduce the cost since the bill is footed by the public. Seems much more parasitic in my opinion
- crumbshot 5y agoThat's a separate issue, assuming it really is an issue, and not just an indication that those private housing developments in Portland are being constructed with a cheaper, lower build quality so that their investors can generate more profit.