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A comment on Europe embraces rent controls, a policy that never works. Parent comment

Re:Europe embraces rent controls, a policy that never works by tj-teej on Friday July 26, 2019 @08:09PM (#20539398)
Why is it rent-control OR building new apartments?

Houses don't appear immediately and isn't it a good idea to keep people in their homes while the supply grows (building new houses) and the economy stabilizes?

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Re:Europe embraces rent controls, a policy that never works by aeternus on Friday July 26, 2019 @08:10PM (#20539413)
No, because rent-control disincentives new development.
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Re:Europe embraces rent controls, a policy that never works by cj on Friday July 26, 2019 @08:13PM (#20539430)
How so? Many rent control policies exclude new development from rent control.
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Re:Europe embraces rent controls, a policy that never works by krapht on Friday July 26, 2019 @08:19PM (#20539470)
If I buy a property to rent out, the net present value to me is lessened due to rent control.

If (x = net present value) < (y = cost to develop) then I don't build.

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Re:Europe embraces rent controls, a policy that never works by refurb on Friday July 26, 2019 @08:45PM (#20539631)
It drives prices higher making building new building less profitable.

And more importantly, disincentivizes maintenance and upgrades to older buildings.

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Re:Europe embraces rent controls, a policy that never works by otterley on Friday July 26, 2019 @08:17PM (#20539455)
> isn't it a good idea to keep people in their homes while the supply grows

Maybe, maybe not. It seems like a foregone conclusion among many people, but isn't backed by evidence or data.

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