Posted on 02/15/2019 1:48:44 PM PST by Twotone
Oregon will soon be the first state to have a statewide rent control program. Last week, in my first week at Cascade Policy Institute, I testified in opposition to the rent control bill, SB 608. The bill has the support of the Governor Kate Brown, House Speaker Tina Kotek, and Senate President Peter Courtney. About 100 people signed up to testify, and supporters outnumbered opponents by 2-to-1. It’s a done deal and it’s a bad deal.
During World War II, the federal government instituted a national system of rent controls, establishing maximum rents for rental properties. New York City was the only city to retain this first generation of rent controls after the war. During the 1970s, rent regulations were introduced in many cities, including Boston; Washington, D.C.; San Francisco; and Los Angeles.
In contrast with pure rent control (a fixed maximum price), SB 608 is a form of “second generation” rent controls that allows annual rent increases, limited to 7 percent plus inflation. Rent controls under SB 608 apply to buildings that are more than 15 years old. The bill also places strict limits on “no cause evictions.”
Nobel laureate Paul Krugman wrote in the New York Times that rent control is “among the best-understood issues in all of economics, and—among economists, anyway—one of the least controversial.”[1] Krugman’s well known and widely used economics textbook describes the economic inefficiencies associated with rent control:[2]
Rent control, like all price ceilings, creates inefficiency in at least four distinct ways. It reduces the quantity of apartments rented below the efficient level; it typically leads to misallocation of apartments among would-be renters; it leads to wasted time and effort as people search for apartments; and it leads landlords to maintain apartments in inefficiently low quality or condition.
(Excerpt) Read more at cascadepolicy.org ...
It will make it worse!..................
If they want to ‘solve’ the housing crisis, simply roll back taxes on multi family zoned property and give the property owners an incentive to build...........Like ......No tax on rent monies for ten years.............
Paul Krugman is against rent control? But Pres. Trump is against rent control, too. Something is wrong here.
Oregon only has 3.5M people.
There is open land everywhere.
The libs dont allow builders to make more housing.
And each permit has to cover the stupid train to PDX.
Each permit has $3,500 added to it.
To profit a builder has to build a 650k home.
There is plenty of evidence about how poorly rent control works. Indeed, the history (and failure) of leftist economics is readily available. Yet, idiots will, again and again, implement such nonsense.
AOC has a Degree in Economics......................really!.................From Boston University!................I’m not kidding!...........
I’ve never been there, but heard that Portland has some strict zoning laws, boundaries drawn around big areas of vacant land, for which housing construction is forbidden.
That right there, if true, would tend to push up housing costs, based on supply and demand. The demand keeps growing but the supply can’t grow with artificial limits of where building is allowed to occur.
So the Portland weirdos plan to use their demographic advantage to screw the rest of the State?
“The bill also places strict limits on “no cause evictions.””
This is by far the worst part of the bill. It forbids the landlord to simply terminate (not renew} a rental contract at the end of the contract, whereas a tenant can.
It’s getting to a point that no the state runs your property and you as the owner simply manage it for them, under threat of serious penalties if you deviate from their dictates.
“It will make it worse!”
This is Oregon. That’s the plan.
You should see their anti-2nd amendment and single health payer plan.
Oregon, Venezuela style.
“Rent control” is abolition of private property rights, Plank #1 of the Communist Manifesto:
http://laissez-fairerepublic.com/tenplanks.html
Portland, godless communists.
Think the thing that strikes me most about them is...they’re ugly.
Scraggliest looking bunch of white people I’ve ever seen.
Guess it’s the weather. They’re all mossy...
Yep, I believe OR is #5 in land mass.
That IS an amazing review of how far gone we are down the Marxist rabbitt hole.
Under the old American system the country went from wilderness to pre-dominant world power in a century. Breathtaking.
Under the post-1913 insanity - the income tax, the Reserve bank - we have lurched from financial disaster to something like the old growth and back again on a clearly periodic boom-bust cycle driven by debt deflation.
Abolish the income tax AND the Reserve Bank. Go back to hard money excise taxes.
The growth from that will be breathtaking.
Oregon has a plan to fix that. They are going to tax homes (more) so the price of housing will come down.
The only control that works well is self-control.
And that is abhorrent to the liberal nanny state.
can you boot the tenants out to do ‘remodeling’?
9 or 10 depending on how much land one counts off shore—with water it passes Wyoming.
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