Posted on 02/02/2020 7:01:13 AM PST by Kaslin
Presidential candidate Bernie Sanders wants to impose national rent control. He unveiled the policy proposal last September and recently reiterated his support via Twitter.
Sanders proposes a national cap on annual rent increases to 1.5 times the rate of inflation or 3 percent—whichever is higher.
Ironically, the article Sanders tweeted out attributes increasing rent prices, in part, to government control over the private housing market. This irony reinforces what many economists already know to be true: the left’s prescriptions for lowering housing prices are precisely what keeps prices high and supply low.
Rent control would be a flagrant infringement of American property rights and a vast expansion of the federal government's control over the private housing market.
The government should have no role in determining rental costs. All governments are ill-equipped to consider the many visible and invisible factors that determine the market price of a rental property.
What enforcement mechanisms would come down on the American people under a national rent control bureaucracy? If a local landlord, for whatever reason, fails to comply with the new federal standard, what kind of punishment would ensue? Might the IRS garnish his wages? Would he be fined out of business? Put in jail?
None of that passes the smell test is because none of it feels like it's an appropriate use of the federal government's power nor is it even within the scope of power that the government ought to operate in.
Sanders wants to create a new bureaucracy inside HUD which will involvemassive administrative costs. Enforcing rent control requires an elaborate bureaucracy—especially on a national level. To take an example of one city, San Francisco's Rent Arbitration Board can expect to bring in over $5 million in order to enforce rents on 170,000 rent units. The National Multifamily Housing Council explains, “Rental property must be registered; detailed information on the rental property must be collected; elaborate systems for determining rents and hearing complaints and appeals must be established.”
Sanders has proposed a myriad of dangerous, government-expanding policies. National rent control is one that has gotten very little media coverage, despite the dire effects of such a policy.
Rent control hurts the very people it aims to help. The housing market in rent-controlled cities is defined by dissatisfaction, maddening trade-offs, and paycheck-consuming prices.
If rent control on the local level causes increases in rent prices and limits housing supply, it’s not hard to imagine just how severe the effects would be on a national scale, when the federal government tries to impose Manhattan-type rent control policy on Thurmond, W. Va.
Even the socialist Swedish economist Assar Lindbeck said, “In many cases rent control appears to be the most efficient technique presently known to destroy a city – except for bombing.”
Border? What border?
So if inflation is 10% my rent will go up 15%, why?
Why?
Because your landlords mortgage/taxes would go up that much.
Trust me, I have no skin in that game as I own my home. I think it sucks for the owner and the renter. And won’t do a damn thing for the economy except spur immediate inflation.
Yeah especially young people
Just so you know, it's now 2020; 1970 was a long time ago. Pretty sure you don't live in farm country if you're coming up with that story. Now the illegals own houses and rent out rooms to families.
Most rental owners are bottom feeding scum. Rental properties are like the old feudal system.
Come on, stop channeling Bernie.
I want people owning houses instead of renting. If there is anything that should be fixed it is the usurious loan structures that prevent most average people from owning property.
There's been times in my life when I've owned and rented property; they each have their place. But the usury comes into play with unsecured credit, payday loans, used car sales, 'rental furniture', etc. Home loans have long been the cheapest. Feel free to rant away against having to pay rent to the county you live in in the form of property taxes.
Well, here’s a less out of the rump type idea...
Limit public salaries (and benefits) to no more than twice the median household income they serve. Maybe even three times if you really want to add flexibility. You want a pay raise this year? You get it after everyone you serve gets a pay raise.
Want $30,000 a year in benefits? Cool, you get your salary reduced to pay for it. Or just take the money and buy your own coverage like everyone you serve.
Farmers are subsidized babies. I have little respect left for the 1%-ers that we call farmers.
I was in property management in Ontario when Bill Davis (a supposed conservative) brought in rent controls. That was YEARS ago - it brought construction of any rental buildings to a screeching halt, there have been very few erected since, and rents are high because of the shortage of units available.
That's nice...will he also limit property tax increases to the same?
Because the cost of maintaining a house will go up also.
Oh and RE tax will double.
Thus “slum lords” are created. They won’t be able to keep up.
These Democrats running for President - they've been in the Senate or House and could have introduced a bill on the very things they want now while running for President.
Follow Venezuela's example Bernie. Seize those boxes
of Charmin before they hoarded by those greedy
capitalist rich white people and business owners.
20 million illegals . . . supply . . . demand.
Rental owners are bottom feeders.
The usurious loan sharks in the mortgage industry have ruined the American dream, both them and the Chamber of Communists benefit from limiting supply, and lobbying for cheap foreign labor.
And don’t forget Big Agriculture extorting local governments for subsidies to house their foreign workers. They even want them voting in our elections.
I can’t see defending an already communist system, we don’t have free enterprise as long as we have 20 million people who don’t belong here in the first place.
Under what Constitutional authority? The Interstate Commerce Clause?
What interstate commerce comes from renting an apartment?
Recently, our town's sewer fees were pretty much doubled (now standing at $53 per month, with increases set for the next couple years.) Trash fees will be going up, water fees are still at drought year punishment high, and the local college district is pushing another half billion of bonds to stick it to property owners.
California recently enacted a statewide rent control, which was retroactive back 9 months. So a property owner who raised rents to reflect the increased costs now has that raise retroactively limited in what they can collect today (prior payment isn't affected, just future payments.)
The limit is 5% + cost of living adjustment in rent raise per year. Raising at anything less than the maximum permitted is stupid; you'll forever be behind the rise in costs of renting property and just giving your money away.
And like the People's Republic of Santa Monica demonstrated, the moment that rent control goes into effect, EVERYTHING going forward gets proposed to be attached to property - utility taxes, bonds, fees to license property owners, etc. Can't let their 'renter' voters ever see the bill for all the free stuff.
WOW. Been too long in the city apparently when you're swallowing liberal propaganda that badly. Though admittedly, you've got their jargon down pretty good, using their '1%-ers' and 'subsidized' characterizations.
Just so you know, it’s now 2020 and there are still 20 million illegals in the country.
I’m not really interested in the communist UFW, Bud Antle Inc. running California.
I’m actually channeling Pat Buchanan and not your bottom feeding neo-con GOP rental owners who made excuses for the last 30 years for open borders.
Ha, You know how the rats love to raise taxes. Do you think he's different? Surely not.
What is really crazy is that the advocates for this don’t realize how badly this hurts individual renters.
I rent for a host of reasons. It makes sense for me.
I paid for a year at once at a former property and negotiated a discount on monthly rent when I did that. I have a neighbor in my building who signed a long-term, multiyear lease with a good monthly rate.
Put in rent control and these types of opportunities disappear, not to mention declines in service and keeping buildings up to date if costs outpace rental income.
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