That is true but the Oregon law allows rent increases of 7% plus the local rate of inflation. Say the local inflation rate is 3% so the allowable rent increase is 10%. An annual increase of 10% would be manna from Heaven for multi-family property owners.
Rent control raises rents in the long run, because less housing is built and maintained.
Exactly, rent control is bad news for renters, because rent control reduces the incentive to increase the number of new units available on the market.
Communities have also imposed stricter and stricter zoning requirements for new construction of multi-family dwellings, further reducing the inventory of rental units and artificially driving up the costs.
Rent control raises rents in the long run, because less housing is built and maintained. Democrats who say they want lower rents should make it easier to build.
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You’re applying basic economic common sense to a situation where the only thing that matters is good intentions and an IQ of 70, but that’s only at the information consumption level. Way behind the curtains I suspect plans within plans. First you get the rent control, then when there is a scarcity of rentals, you get government subsidies for landlords, which opens to the door to more regulation and control, and eventually lovely new nepotic construction contracts for public housing. Oh, and more voters in the tent.
Or lower taxes on rental property. Or lower taxes on profits generated from rental property.
If owning and operating rental property becomes more profitable there will be more rental units to be had. More units mean more competition for renters. More competition means lower rents.
Anyone proposing rent control laws should be challenged to identify a place where the stated goals of rent control have been successful and why.
Rent control is also bad news for renters.
Landlord goes broke since they couldn’t pay maintenance and increasing property taxes; people get displaced because the building is shut down.
You really want to solve the rent crisis, deport thirty million illegal migrants. Instant housing availability and instant wage increases for the remaining Americans.
But, that would not make a New World Order dictatorship, guess Congress will have to make a choice.
Notice, this totalitarianism is occurring in DEMONRAT-controled states.
Facts be damned, the rising Socialist Millenial electorate seems hell-bent on doing this.
Plank #1 of the Communist Manifesto: Abolition of private property rights.
The States will become the Slumlords and the taxpayers will pay for it
You are correct. Need to also mention NYC did this and the apartments went condo.
Rent control is their way of taking away our rights to private property. They aren’t ready to seize our property, just yet, so they prevent us from using it.
Their end goal is the elimination of private property, except for the ruling elite. They can’t do it yet. But give them time. And when they do it they will call it something other than communism.
Sounds like a way to make more property available for government confiscation....
“More States Are Pursuing Rent Control. That’s Bad News for Landlords.”
even worse news for renters, since it’s a financially losing preposition to keep properties in good condition as well as to build and own additional properties ...
This is very true. Rents rise because of rent control. In San Francisco there are anywhere from 15,000-30,000 vacant apartments at any one time. Hard to believe in a city the size of a postage stamp but true.
Socialism eliminates incentive to excellence. The first casualty is the profitability of rental properties, but the second casualty is any plans by landlords to upgrade their facilities. And the third casualty is maintenance.
How do they intend to measue the "local " inflation rate? 7% might seem ok now but should the national inflation rate quickly shoot thru the roof like it did in the 70's, well not so much. I've seen condo maintenance fees double in 3 short years at a few places, so no, keep the gov out of that stuff.