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Local housing policy only sets housing costs explicitly if they override market forces e.g. via rent control. There are plenty of examples of how the market res
by julienb_sea 3y ago
Local housing policy only sets housing costs explicitly if they override market forces e.g. via rent control. There are plenty of examples of how the market responds to this type of intervention, by not building more supply, letting existing supply fall into disrepair and constricting uncontrolled supply, resulting in much higher market rate.
In general, housing policy affects supply, and market forces decide the prices. Notably increasing supply doesn't always lower prices as demand is elastic.
- lazyasciiart 3y agoThey override market forces explicitly with zoning rules that forbid building more housing. The ability to produce more supply in response to demand is the market at work. That’s why everyone who complains that rent control distorts the market can be ignored unless they are also complaining about zoning, building codes and permit processes.
- spxneo 3y agoI think you meant inelastic demand. Housing would fall under that category where supply does not impact price, which is my point.