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His sources clearly say that rent control reduces the supply of rental housing as well as making people rent smaller and smaller units. I would posit, however,
by Causality1 6y ago
His sources clearly say that rent control reduces the supply of rental housing as well as making people rent smaller and smaller units.
I would posit, however, that it isn't rent control having a major effect on housing supply but rather regulations on new housing. Zoning difficulties, permit difficulties, requirements to accommodate personal vehicles, etc.
- anonuser123456 6y agoNew housing tends to be upscale, thus more expensive. The well to do move from cheaper to more expensive housing on average. This frees up cheaper units for the less well to do. Caps on rent prices reduce the incentive to build high end housing where the margin would be higher, but rent caps limit this, so less gets built overall.
- eru 6y ago> This frees up cheaper units for the less well to do. For people who want to learn more: this process is called 'filtering'. See eg https://www.planetizen.com/blogs/100293-how-filtering-increases-housing-affordability https://www.planetizen.com/blogs/100293-how-filtering-increa... > New housing tends to be upscale, thus more expensive. Yes, and that's also the mechanism for how we got nicer and nicer houses over the centuries.