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Really that won't help. These kind of regulations have been tried in so many countries before and the result is always the same: cap the rents => landlords will
by misja111 2y ago
Really that won't help. These kind of regulations have been tried in so many countries before and the result is always the same: cap the rents => landlords will take houses from the markets and sell them instead => there will be a shortage of properties for rent so finding them will be very hard, and the few landlords left will be extremely selective when choosing from the many candidates.
What does help: increase the supply. Make it easier to build or let houses by reducing bureaucracy, invest in housing projects etc.
- spaniard89277 2y agoIncreasing supply won't work with places where the demand is virtually infinite. You have to cut the demand somehow, and in the case of Spain it means preventing foreigners to access such stock. That means public housing, or some law that creates a lot of friction. Cheaper housing in Spain will lead to induced demand, because there's just too many people willing to move here.
- misja111 2y agoYes you're right, reducing demand will also work. Which is exactly what capping rents won't do, this will actually increase demand ..
- account42 2y ago> Really that won't help. These kind of regulations have been tried in so many countries before and the result is always the same: cap the rents => landlords will take houses from the markets and sell them instead Good. Too many people are forced into renting due to insane property prices as is.
- piaste 2y ago> cap the rents => landlords will take houses from the markets and sell them instead => there will be a shortage of properties for rent Won't step 2 increase the supply of houses for sale, thus lowering the prices, thus decreasing the demand for rentals?