Thursday, June 7, 2007
What’s the effect of rent control laws? In post-Reagan America, the most common response might be: It constricts the supply the low-cost housing and causes a deterioration in the quality of the same, as landlords avoid money-losing rentals.
But a chief purpose of rent control is to provide “housing security,” according to Barnard’s Greg Smithsimon, in an essay on Planetizen. While economists may fret about the long-term effects of restricting the price of a valuable service, a short-term effect of rent control, the argument goes, is that renters aren’t forced out of their apartments during housing price spikes, such as the bubble that many high-priced American cities have experienced in the past decade. In New York, where inflation has pulled many units of out rent control, new Governor Eliot Spitzer wants to raise the rent control ceiling to cover units costing more than $2000 (an amount that seemed like a “luxury” rate 10 years ago, but not today).
It’s true that rent control provides at least short-term housing security. And it’s also true that the days of envy-creating “subsidies” to long-term renters in Manhattan or Cambridge are mostly a thing of the past, thanks to reforms of the rent control laws. But the goal of policy makers should be to ask: Do the benefits of housing stability outweigh the unwanted incentives of rent control? Economists may scratch their heads over the concept of the “benefits” of housing stability, and but it’s the question that a good policy maker should have to answer …
This blog is an Amazon affiliate. Help support Land Use Prof Blog by making purchases through Amazon links on this site at no cost to you.
- Katherine Dentzman on A Coordinated Approach to Food Safety and Land Use Law at the Urban Fringe
- Jesse Richardson on Local Regulation of Hydraulic Fracturing
- Jamie Baker Roskie on Local Regulation of Hydraulic Fracturing
- Samuel on Schleicher and Rauch on local regulation of the sharing economy
- Timothy Wayne George on Is Reed v. Town of Gilbert an important sign case?
- Water Down Under: A Report from Australia by Barb Cosens: Post 2: Comparative Water Law: Australia and the western United States or Conversations with Claire
- APA Planning & Law Division's Smith-Babcock-Williams Student Writing Competition now accepting entries
- Jan 30 - Boston U Law - The Iron Triangle of Food Policy - AJLM Symposium
- "Basic Human Right" to Farm Your Lawn?
- CFP: Fordham Law: Sharing Economy, Sharing City: Urban Law and the New Economy