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Like many policies on the left, it’s easier to go with the vibes than actually look at the results and see if it’s a good idea. Rent control never works. It has

Like many policies on the left, it’s easier to go with the vibes than actually look at the results and see if it’s a good idea. Rent control never works. It has been played out on every continent save Antarctica and it always leads to worse outcomes.

helf 2y ago
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ProxCoques 2y ago
There are many implementations of rent controls. Argentina's were rather badly done. Compare to: Germany - where landlords can't charge more than 10% above the local average rent. Spain - where landlords can increase rent only if they improve the property, but the increase can't be more than 20%. Netherlands - where one in three homes in the Netherlands are rent-controlled, and rental apartments are capped at under €1,000 per month. France - rent control applies to furnished and unfurnished properties. Scotland - government introduced emergency legislation to cap rent increases in the private sector at 3% as of 2022. Sweden - rent controls apply to new and older buildings, with local market conditions setting the regulated rents. New York City - a Rent Guidelines Board sets rent increases based on inflation, and landlords are required to renew leases.
- indigo0086 2y ago
  Rent controls limit the potential of the underlying asset by having Tennants hoard their current rent in ever degrading apartments. Its an artificial limitation on a resource that can be renewed to lower costs but you end up with a massive amount of rent hoarders afraid to shop around for better housing. It is such a disruption to incentives for both renters and home providers.
- Gud 2y ago
  From my experience, the rent control in Sweden is a total disaster.
undersuit 2y ago
Rent Control does exactly what it can do. It's a tool a government can use to reduce the pain the people feel while they do other things to address the root cause.
- underseacables 2y ago
  It's a political gift. "Vote for me! Forget that I have been in office for decades, vote for me and this time I will make those greedy landlords pay. I will give you rent control! Vote for me." And it works.
  - undersuit 2y ago
    No, IF it worked Milei would not have been elected.
    - Overtonwindow 2y ago
      I don’t think they meant it was supposed to work. It’s an election gift is probably what they meant. Politicians run on certain promises they have no intentions of filling, or they say things that they think will get them votes.
archagon 2y ago
People need stable long-term housing, which is a need that free-market economics can’t really fulfill. It is not humane to have to worry about your rent becoming unaffordable year after year.

helf 2y ago

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ProxCoques 2y ago

There are many implementations of rent controls. Argentina's were rather badly done. Compare to: Germany - where landlords can't charge more than 10% above the local average rent. Spain - where landlords can increase rent only if they improve the property, but the increase can't be more than 20%. Netherlands - where one in three homes in the Netherlands are rent-controlled, and rental apartments are capped at under €1,000 per month. France - rent control applies to furnished and unfurnished properties. Scotland - government introduced emergency legislation to cap rent increases in the private sector at 3% as of 2022. Sweden - rent controls apply to new and older buildings, with local market conditions setting the regulated rents. New York City - a Rent Guidelines Board sets rent increases based on inflation, and landlords are required to renew leases.

indigo0086 2y ago
Rent controls limit the potential of the underlying asset by having Tennants hoard their current rent in ever degrading apartments. Its an artificial limitation on a resource that can be renewed to lower costs but you end up with a massive amount of rent hoarders afraid to shop around for better housing. It is such a disruption to incentives for both renters and home providers.
Gud 2y ago
From my experience, the rent control in Sweden is a total disaster.

undersuit 2y ago

Rent Control does exactly what it can do. It's a tool a government can use to reduce the pain the people feel while they do other things to address the root cause.

underseacables 2y ago
It's a political gift. "Vote for me! Forget that I have been in office for decades, vote for me and this time I will make those greedy landlords pay. I will give you rent control! Vote for me." And it works.
- undersuit 2y ago
  No, IF it worked Milei would not have been elected.
  - Overtonwindow 2y ago
    I don’t think they meant it was supposed to work. It’s an election gift is probably what they meant. Politicians run on certain promises they have no intentions of filling, or they say things that they think will get them votes.

archagon 2y ago

People need stable long-term housing, which is a need that free-market economics can’t really fulfill. It is not humane to have to worry about your rent becoming unaffordable year after year.