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Price controls dont work. This is economics 101 and tested many times in the past and as of recent. All you're doing with artificially constraining price and
by trident5000 3y ago
Price controls dont work. This is economics 101 and tested many times in the past and as of recent. All you're doing with artificially constraining price and other regulations is reducing supply in the long run. The issue bubbles and then eventually bursts.
However, the issue in congested areas is a matter of physics and people unwilling to relocate. Its not from renters simply fulfilling the pricing demand. I mean what exactly is the long term play in areas like this? Just keep stacking people on top of each other into infinity? Its obviously not realistic.
- klodolph 3y agoYou have to define the problem too narrowly in order to say that price controls don’t work. Rental increase caps are not something designed to make the overall housing prices more affordable. That’s just not the goal in the first place. The goal is to provide additional stability to renters. That additional stability will, of course, get priced in.
- mcv 3y agoIt's not the rent prices that are constraining the housing market, but the restrictions on building new houses. And in many parts of the US, the prohibition on building anything other than single-family detached homes.