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Why Rent Control Won’t Solve the Rent Rise Problem in the U.S.

In December 2022, $1,981 will be typical monthly rent In the United States, sales increased 7.4% year-on-year. But while rents are starting to stabilize nationwide, rent affordability remains a challenge for many Americans.

According to Leah Simon Weisberg, an adjunct law professor at the University of California, San Francisco, “There is literally nowhere in the country where tenants don’t have to pay rent.

In response, support for rent control policies is gaining momentum.

But this is not the first time such a policy has gained widespread support. After the massive economic turmoil caused by World War II, the federal government imposed loose rent regulations. 80% of rental housing from 1941 to 1964.

Over time, it was abandoned as eminent economists unanimously opposed the policy. That sentiment continues to this day.

“There are various surveys of economists. IMG showed it was only 2% He believed that rent regulations in places like New York and San Francisco were having a positive impact on affordable housing.

Economists argue that rent regulations will discourage developers from building more homes, which will only exacerbate the housing crisis in the United States.

America is already suffering 3.8 million household deficitEspecially at a low-income price point, according to Habitat for Humanity.

“As a country, we have not invested in building a diverse supply of affordable housing in various communities. Instead, we have relied on the private sector,” said President Sharon Wilson Geno. National Housing Council. “But unless that money flows into the market and investors see it as a better investment than other kinds of stocks and other kinds of investments, they won’t come.”

look video To figure out why so many economists are against the idea of ​​broad rent controls.

https://www.cnbc.com/2023/03/15/why-rent-control-wont-solve-the-issue-of-high-rents-in-the-us.html Why Rent Control Won’t Solve the Rent Rise Problem in the U.S.

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