Why Rent Control Won’t Solve America’s High Rent Problem

In December 2022, $1,981 is Typical monthly rent In the US – 7.4% increase over the previous year. But while rents are starting to stabilize nationwide, many Americans are still struggling to afford rent.

“There’s hardly anywhere in the country where tenants aren’t burdened by rent,” said Leah Simon Weisberg, an adjunct professor of law at the University of California, San Francisco.

In response, support for rent control policies has grown in popularity.

But this is not the first time such policies have gained widespread support.Following the massive economic upheaval caused by World War II, the federal government imposed approximately 80% of rental properties between 1941 and 1964.

Over time, it was abandoned as prominent economists unanimously opposed the policy. That sentiment is mostly still alive today.

“There are various surveys of economists. One by IMG shows only 2% Rent controls in places like New York and San Francisco have had a positive impact on affordable housing, according to Jay Parsons, chief economist at RealPage.

Economists believe that rent controls will prevent developers from building more homes, which will only exacerbate the housing supply crisis in the United States.

America has suffered 3.8 million households in deficitespecially at low-income price points, according to UN-Habitat.

“As a country, we’re not investing in building housing supply in different neighborhoods, at all different price points. Instead, we’re relying on the private sector to do so,” said Sharon Wilson Géno, National Multifamily Housing Council. “But unless that money comes into the market and investors think it’s a better investment than other types of equity or other types of investments, they’re not going to come.”

look at video Find out why so many economists oppose the idea of ​​broad rent controls.

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