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> > If SF applied Rent Control to Condos, we might see more apartments being built? > Can you help me understand why you think extending rent control would inc
by sampo 5y ago
> > If SF applied Rent Control to Condos, we might see more apartments being built?
> Can you help me understand why you think extending rent control would increase construction?
If SF applied rent control to both condos and rental apartments, it might change the balance so that relatively more rental apartments would be build, and less condos. If the numbers now were 80 (condos) and 20 (rental apartments), the new numbers might be 40 and 40.
- Kalium 5y agoIf the problem is that apartments are difficult to turn a profit on and condos are comparatively easy, is there a reason to think we'd get 40 and 40 instead of 20 and 20? Or worse, maybe just the 20 apartments that were already going to be built? None of which are rent controlled at all, mind you. If this seems counterintuitive - and it did to me at first - consider that the money being spent to develop that housing has plenty of alternatives. Not all of which are SF housing. SF isn't guaranteed some level of privately-funded construction each year, after all. Trying to shift the mix runs the risk of adjusting the size of the mixture too, exactly as your suggested model does.