In recent months, both President Biden and Vice President Harris have endorsed government interventions aimed at curbing rent increases, particularly targeting corporate landlords. Biden's proposal to cap rent hikes at five percent under threat of losing federal tax breaks, alongside plans for affordable housing construction in Nevada, underscores a growing sentiment among policymakers that more regulation is the answer to rising housing costs. Similarly, Harris has vowed to "take on corporate landlords" with promises of rent caps as a cornerstone of her presidential campaign. These policy proposals are short-sighted; in the long run, rent controls exacerbate the very problem they seek to solve. Rent controls disincentivize investment in the rental housing stock since landlords may not be able to raise rents to cover costs. As a result, rent controls contribute to poor living conditions and housing shortages.
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Table of Contents
- In recent months both President Biden and Vice President Harris have 1
- These policy proposals are short-sighted in the long run rent controls 1
- Rent controls disincentivize investment in the rental housing stock since 1
- Rent controls also generate arbitrary redistribution because tenants who 1
- Rent controls also create mismatches since tenants who occupy rent- 1
- A 2003 study estimated that 21 percent of New York apartment renters 1
- These ill effects extend beyond rent-controlled areas. The diminished 2
- The right way to address housing shortages is to reduce zoning 2
- Thus while rent control seems like a quick fix to the housing crisis it 2
- This article appeared on Substack on November 4 2024. Jonah Karafiol 2
