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Democrats in denial over Trump defeat, voters say: ‘Haven’t learned the lessons’
(www.theguardian.com)
this post was submitted on 18 Jan 2025
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politics
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Capping rent makes more housing less likely. Are you suggesting government built housing?
Not allowing one or two private equity firms to own a lions share of the market would help.
Government built housing is how the UK solved the problem last time. Then Thatcher sold it off and there hasn't been any real interest in doing it again despite all the same problems coming back.
iirc its not so much a lack of interest as we literally banned local municipalities from building more (not straight up but we banned the mechanism by which they were doing it)
Yeah that will do it
Non profit housing, be it through companies owjed by the municipality or cooperatives who provide housing to their members are very effective means to limit rents and provide housing.
In many European countries it used to be normal for a large part of the rental market to be in the hand of such entities or even housing built to be buyed to own by lower middle class families.
Incidently rents started exploding after a lot of these got privatized in the 80s to 00s.
That's why you only cap rents on buildings that have existed for some time.
Businesses do not plan for 30 years or more in the future. If landlords can't make an acceptable rate of return within 30 years, they're not going to build a new house or apartment building.
So you can attach rent control provisions to buildings that are over a few decades old, and it will have zero impact on the financing and construction of new housing. It will only affect buildings after they've long since been built and paid for.
You do have to worry about rent controls discouraging landlords from keeping buildings maintained. But that's why good rent control doesn't cap rent, but simply limit the rate of increase. If a landlord can afford to keep a building maintained today, they will be able to keep it maintained in the future, even if rent increases are capped to the rate of inflation.
If anything, smart rent controls like this actually encourage the construction of new housing. By limiting rent increases on old buildings, you encourage landlords to knock them down and replace them with bigger and newer buildings that can be rented at any rate. In unregulated markets, landlords can increase profits by colluding to suppress the construction of new housing stock. Why invest the money in new buildings if you can just increase the rents on existing buildings by conspiring to prevent new buildings from being built? Smart rent controls mean that if landlords want to see their profits increase at any rate higher than inflation, then they will need to actually build new housing units.
Can ypu provide an academic source that supports your claim regarding "smart rent controls" or are you just pulling this from the ether?
I would suspect that once you knock down a building you'll replace it with luxury housing as you'll profit much faster as construction is remarkably expensive. I suspect the results of ypur idea is many times fewer affordable homes being available in the long run as landlords are continually looking to make back their latest investment.