3 ms·

Did you read my comment? It is literally about how "strict rent increase laws" are not the solution.

• arcticbull 3y ago
  While true, if supply and demand are allowed to meet through new construction you won't need rent stabilization laws.
  • CPLX 3y ago
    Nope. Supply and demand will never be smooth and linear, housing markets will always be intrinsically inelastic. Ever tried moving? Since that’s true you can use policy to decide who gets to keep the inevitable consumer surplus.
  • kredd 3y ago
    I understand the general economics behind it, but I don’t think you can free market the problem away when the market is very obviously not free. Just off the top of my head - incentives for over complicating the zoning laws in big cities, extreme push from the locals to stop the new constructions, owners not wanting their investments to go down. I live in a rental building in Vancouver, and without rent control it would be awful for everyone, as the demand has been insane in the past decade. Sure, for people like us who can pay 2x the rent wouldn’t exactly be a problem, but I have friends, and a lot of elderly in my neighbourhood who would have to move out right away. I can’t imagine a possible way for supply to catch up with the actual demand just because how the municipal governments function. And well, construction business isn’t known to be efficient here in North America.
• Aurornis 3y ago
  Your component proposed a set of rent controls (12 month notices, limited yearly raises) that are basically equivalent to rent control in many locations.