5 ms·

> of course we need to build a ton of new housing To build a ton of new housing, you need investors willing to do so. If you have a million dollars, would you

> of course we need to build a ton of new housing To build a ton of new housing, you need investors willing to do so. If you have a million dollars, would you invest to build in a rent control city, or in a city where you can raise the rent as you wish? Most people would choose option 2, thus creating shortages in rent control cities, which in turn make the housing more expensive than it would be if the rents would be free-market.

howinteresting 5y ago
As I said, then the solution is to lessen the importance of the incentive system and for the state to do so, for example. There are things in life we treat as core moral values even if they cause issues with incentives. For example, people should not go to prison for not paying their debts, even though it runs against incentives. Rent stabilization should be one of them as well. The rest of society should adjust.
- flavius29663 5y ago
  > people should not go to prison for not paying their debts Try to not pay your taxes and you end up in prison in all the countries I know about. Anyway, I feel like your argument works against you, actually. I think a core moral value is to allow anyone to move into the city if they wish so. With rent control, you limit the privilege to live in a city mostly to those born there. This is worse than the unfair advantage you have when raised in a wealthy family. At least anyone can study and make a good life later on, but rent control doesn't allow for much movement altogether. If you're born outside the city - bad luck.
  - 8note 5y ago
    You could always pay those people to move out, the same as you would for an owned house. The same rent control alternative applies too. You can move to the outskirts of the city that are less desirable locations.
Leherenn 5y ago
It is really the lack of investors that is causing the lack of supply? I was under the impression that it's mostly that building more is not allowed/very difficult (for various reasons), not that there is a lack of capital.
- toxik 5y ago
  Correct, in Stockholm for example, it is absolutely not as simple as “investors turn away”, far from it. In fact, they did build housing. Luxury housing that doesn’t solve the problem at all. Student apartments that are so expensive to live in, you have to work a job while studying.
  - KptMarchewa 5y ago
    If you build luxury housing, then people moving there should free up some space. Of course that does not happen, and they hoard properties because of lack of real property taxes in most places. Some are using them to fuck over new buyers, like California.
8note 5y ago
The investor can be the government imposing the rent control. It doesn't have to be a private investor

howinteresting 5y ago

As I said, then the solution is to lessen the importance of the incentive system and for the state to do so, for example. There are things in life we treat as core moral values even if they cause issues with incentives. For example, people should not go to prison for not paying their debts, even though it runs against incentives. Rent stabilization should be one of them as well. The rest of society should adjust.

flavius29663 5y ago
> people should not go to prison for not paying their debts Try to not pay your taxes and you end up in prison in all the countries I know about. Anyway, I feel like your argument works against you, actually. I think a core moral value is to allow anyone to move into the city if they wish so. With rent control, you limit the privilege to live in a city mostly to those born there. This is worse than the unfair advantage you have when raised in a wealthy family. At least anyone can study and make a good life later on, but rent control doesn't allow for much movement altogether. If you're born outside the city - bad luck.
- 8note 5y ago
  You could always pay those people to move out, the same as you would for an owned house. The same rent control alternative applies too. You can move to the outskirts of the city that are less desirable locations.

Leherenn 5y ago

It is really the lack of investors that is causing the lack of supply? I was under the impression that it's mostly that building more is not allowed/very difficult (for various reasons), not that there is a lack of capital.

toxik 5y ago
Correct, in Stockholm for example, it is absolutely not as simple as “investors turn away”, far from it. In fact, they did build housing. Luxury housing that doesn’t solve the problem at all. Student apartments that are so expensive to live in, you have to work a job while studying.
- KptMarchewa 5y ago
  If you build luxury housing, then people moving there should free up some space. Of course that does not happen, and they hoard properties because of lack of real property taxes in most places. Some are using them to fuck over new buyers, like California.

8note 5y ago

The investor can be the government imposing the rent control. It doesn't have to be a private investor