In cities with rent control, why doesn’t it work overall to actually lower the price of housing?
In: Economics
Simply stated, it removes any incentive to build new housing.
The only real long-term solution to housing costs is NEW HOUSING. Period. Full Stop.
Rent control just drives people to put as little money as possible into the housing and gouge people in other ways that don’t technically count as rent.
No one is going to build new housing when they know there won’t be any reasonable profit in it, so developers go elsewhere.
Again, if you want housing costs to go down, build a bunch of new housing, and no, I don’t mean single-family dwellings. I mean apartment buildings, complexes, duplexes, etc.
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