Rent Control - Causing More Problems Than it Solves

Rent control is becoming more popular as rent continues to rise across the country. The economists, real estate analysts, and other housing experts are not for rent control. They are of the belief it is doing more harm than good.

                Zillow conducted a study group and found the following numbers. A good 63% of housing experts say rent control is the government’s way of intervening in the market. No matter how well-intentioned this idea is, the government always finds a way to mess it up.

For residents against anti-rent control, they view it as the government violating the principles of a free market, which in turn hurt more lower-income residents for the future than it does help them in the short-term. 33% in favor also believe rent control should only be used in a crisis.

                Only 2% of the entire group claimed that rent control would be helpful in the short-term during a crisis. As housing prices counted to level off during 2015, rent was still rising, which quickly outpaced incomes. Most U.S. households now pay over 30% of their income on rent.

                Most economists believe rent control is a bad plan for long-term tenants. It unknowingly kills incentive for new rental homes to be built, which in time will lead to too little inventory. Rent control can also hinder landlords from making upgrades to their buildings. They wouldn’t do this if there isn’t going to be any reward for it.

                The biggest outcry for rent control is in the bigger cities. Cities like New York, San Francisco, Chicago, have rent control blanketed in sections of the city, or across the entire city. However, no government representative is concerned about it.

                Comrade De Blasio (Mayor of New York) wants to fix the inventory issue by making newer buildings set aside 20%-30% of their buildings for poorer tenants.  This is a complete socialist/communist blueprint by the way. When rental inventory is low, this is a way to even the playing field between landlords and their tenants.

                On the rare occasion, New York renters will fix up their rented place because they enjoy the renovation. This is when rent control can be useful.  

                Another option would be subsidies. But just like any other government run program, they will find a way to mess it up. Policies don’t ever make a whole lot of sense, but that’s the world we live in.

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