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You can no more override supply and demand than you can override the CAP theorem. If you don't have sufficient supply then demand responds either with shortage
by Plasmoid 5y ago
You can no more override supply and demand than you can override the CAP theorem. If you don't have sufficient supply then demand responds either with shortages or high prices.
People are rationally responding to incentives that exist. It's hard to get a rent controlled apartment because there is more demand than supply. So people are incentivized to give them to family because otherwise it could take a decade to get them.
- jacquesm 5y agoOf course you can: governments do this all the time. Tariffs, incentives, taxes, subsidies, laws. People in this case are responding to the need by renting out rent controlled apartments for a very large premium to people who under normal conditions may not be eligible to live there in the first place. Same thing here in NL, with in the larger cities a healthy dollop of AirBNB tossed in for some extra artificial shortage.