AT: Rent control is a classic example of the law of unintended consequences. When Californians scan their ballots for the November 6 election and consider Proposition 10, which would allow local governments to impose and expand rent control laws, they should consider the long-term harms the measure would inflict on housing quantity, quality, and affordability.
Rent control is a textbook example of a price ceiling, in which prices are capped below market rates (i.e., where supply and demand are left free to interact). As those Econ 101 textbooks will show you, many more people will demand housing at these lower prices, but fewer landlords will be willing to provide them at those rates. This leads to a shortage of housing, which only exacerbates the affordability problem. Furthermore, diminished landlord profits and a glut of prospective renters lead to less investment in maintaining properties and offering amenities, thereby reducing the quality of rental housing.
This is well understood among economists. Though they struggle to agree on many issues, an astonishing 93 percent of economists in a 1992 survey of American Economic Association members agreed that “a ceiling on rents reduces the quality and quantity of housing.”
And yet, here we have Prop. 10, which would roll back a 1995 law that curbs rent control. The Costa-Hawkins Rental Housing Act prohibited local governments from implementing rent control for housing built after January 31, 1995. It also exempted condos and single-family homes from rent control laws and allowed landlords to bump prices back up to market rates once a tenant left. more here
I’ve already voted. Only voted for those with A ratings from the NRA and Cox. That means I voted for 3 people. Always vote agains’t the judges because we’re not allowed to see their records. How many gang bangers did they release who went on to rape and murder? Don’t vote for any props anymore because they’re never what they seem.
Who are those 7% of economists that think rent control works? Rent control not only fails on a theoretical level, it has been demonstrated to fail in real life as well.
Those who ignore history…..
I voted no on everything except for the gas tax repeal. I didn’t vote for any judges, didn’t vote for Senators (two Democrats), voted for Cox, voted straight Republican.
Rent control and socialism are two legs of a three-legged stool, about which there is much actual history.
(I forget what the third leg is, but you know what happens to a two legged stool.)
….Lady in Red
Doubt Rent control will apply to Pelousi, Boxer, Feingold proprieties, Hence, forget-about it . Just my guess,, Hope it does go through, yet, only not those historically above the law.
Rent control is stupid.
Voting for any pol who favors rent control is stupider.
Sidebar
@Lady in Red – Then there’s the one-legged stool. There are a number of uses for such a stool, all having to do with keeping the sitter awake and alert. The most interesting application was introduced by another guy named Al: Al Nobel.
Goldenfoxx – I voted as you, except I voted to get Feinstein out of power. My golf buddies and I were talking about the senate race today, after I paid off my bets, and we were evenly split on the issue.
#walkaway – Mrs. All Too Much voted almost the same as I did, but definitely more conservative than ever before. It took me just forty-four years to get her mind right.
LIR: I think the “third leg” you are searching for is…abortion.
I voted early… With my feet.
KR
When I vote – next week- I will vote against 10 and against Diane! She has proved BEYOND A REASONABLE DOUBT that she is UNIPARTY!
@All Too Much: There were only two Senators on my ballot and both were Democrats – Feinstein and De’Leon. I’m in N. CA and in a red county. So, I had no choice where I live, and I sure ain’t voting for Lyinstein. Hope Cox wins!
Goldenfoxx
One more thing, I live within 5 miles of 2 Indian Casinos. Both have Indian gas stations and we do not pay that 13 cent sales tax! People flock to the casino and get their gas. Everyday a gas truck pulls in and refuels the station, that’s how popular it is. So, whether the tax is repealed, people will still get their gas at the casinos here. It’s hurting other stations in town, but heh, we do what we have to do to stick it to the Governor. Pay back is a bitch.