Re:Rent Control Creates Higher Rents in SF
by spankalee on Monday March 16, 2015 @10:50PM
(#9215995)
I totally agree that we're in a demand bubble, but it's exacerbated by rent control and the historical difficulty of building new units.
This isn't a very fancy theory, it just effects supply and demand. I don't think you'll find many economists who would disagree with the assertion that rent control reduces supply, thus driving up prices. That reduction is caused by people incentivized to stay in a unit when they otherwise might have moved.
This isn't a very fancy theory, it just effects supply and demand. I don't think you'll find many economists who would disagree with the assertion that rent control reduces supply, thus driving up prices. That reduction is caused by people incentivized to stay in a unit when they otherwise might have moved.