Re:California Approves Statewide Rent Control
by Renevith on Thursday September 12, 2019 @01:07AM
(#20948191)
If there weren't rent control, market rents would certainly be much lower, so it's really hard to say whether your aunt and uncle could afford it or not. Surely you weren't basing your statement on the current market rent in their neighborhood? On what basis are you making that claim?
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Re:California Approves Statewide Rent Control
by negrit on Thursday September 12, 2019 @04:37AM
(#20949310)
> If there weren't rent control, market rents would certainly be much lower
source?
Re:California Approves Statewide Rent Control
by Renevith on Thursday September 12, 2019 @05:22PM
(#20956606)
Here's the latest: "... while rent control prevents displacement of incumbent renters in the short run, the lost rental housing supply likely drove up market rents in the long run, ultimately undermining the goals of the law." https://web.stanford.edu/~diamondr/DMQ.pdf
Previously: "Rent control policies generally lead to higher rents in the uncontrolled market, with rents some-times substantially higher than would be expected without rent control (i.e., between 10 to 25 percent higher). Over time, if rent control does not apply to new construction, there is some evidence that the impact on uncontrolled rents diminishes." https://www.nmhc.org/globalassets/knowledge-library/rent-con...
It also follows from supply and demand. Owners are more likely to sell rather than rent out their places, and tenants are more likely to stay in their below-market rent units, both of which reduces supply for new (i.e. market-rate) tenants.