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Part of the problem is that when rents are raised in a predatory fashion, the purchasing power of the renter is diminished. Homeownership rate, 2006-2010 in

Part of the problem is that when rents are raised in a predatory fashion, the purchasing power of the renter is diminished. Homeownership rate, 2006-2010 in SF County = 37.5% Homeownership rate, 2006-2010 in California = 57.4% Median value of owner-occupied units, SF 2010 = $785,200 (2000 = $396,400) Median value of owner-occupied units, California 2010 = $458,500 (2000 = $211,500) Sources: http://quickfacts.census.gov/qfd/states/06/06075.html http://quickfacts.census.gov/qfd/states/06/06075.html / http://www.infoplease.com/us/census/data/california/san-francisco/#ixzz1ywhIF5QE http://www.infoplease.com/us/census/data/california/san-fran... Rent control and rent stabilization aren't about low rent; they are about preventing landlords from enacting unreasonable increases in rent that are related to housing booms and bubbles. Renters really should be immune from the mortgage / interest rate speculation that drives housing booms and bubbles. Instead, the supply of renters is essentially leeched of its ability to invest its capital in housing for the long-term. The topic comes up here so frequently; it's really astonishing how few people understand it.

planetguy 14y ago
Why should renters be "immune" from the fact that the property they occupy is suddenly worth a lot more? This is the gamble you take when you choose to rent rather than buy. Besides, price booms are the natural result of demand outstripping supply. If rents don't go up to reflect this fact, then how do you cope with the fact that the number of people who want to live in San Francisco outstrips the number of people who can fit into San Francisco?
refurb 14y ago
Would you apply the same logic to cars? If you happen to own a car that suddenly became desirable, should the gov't step in and prevent you from getting the best price for it? How about if you own a start-up? Was Instagram guilty of "predator" pricing when Facebook bought them? What people don't seem to understand is that in a free-market system, there is no free lunch. Look at the rental market in SF. People pay "key money" to secure a place. Or the landlord rents to their friend, not the best tenant because if he can't get fair market value in terms of a rental rate, he'll get it someway else (and buyers will pay, because they value it the same way).

planetguy 14y ago

Why should renters be "immune" from the fact that the property they occupy is suddenly worth a lot more? This is the gamble you take when you choose to rent rather than buy. Besides, price booms are the natural result of demand outstripping supply. If rents don't go up to reflect this fact, then how do you cope with the fact that the number of people who want to live in San Francisco outstrips the number of people who can fit into San Francisco?

refurb 14y ago

Would you apply the same logic to cars? If you happen to own a car that suddenly became desirable, should the gov't step in and prevent you from getting the best price for it? How about if you own a start-up? Was Instagram guilty of "predator" pricing when Facebook bought them? What people don't seem to understand is that in a free-market system, there is no free lunch. Look at the rental market in SF. People pay "key money" to secure a place. Or the landlord rents to their friend, not the best tenant because if he can't get fair market value in terms of a rental rate, he'll get it someway else (and buyers will pay, because they value it the same way).