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Bobbydadude01 t1_j72ct4g wrote

Reply to comment by Bendragonpants in State lawmakers introduce bill to bring back rent control by HRJafael

Rebecca Diamond

Tim McQuade

Franklin Qian

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relliott22 t1_j72mgw0 wrote

>The effects of rent control expansion on tenants landlords and inequality.

From the abstract of that article:

"we find rent control limits renters' mobility by 20 percent and lowers displacement from San Francisco. Landlords treated by rent control reduce rental housing supplies by 15 percent by selling to owner-occupants and redeveloping buildings. Thus, while rent control prevents displacement of incumbent renters in the short run, the lost rental housing supply likely drove up market rents in the long run, ultimately undermining the goals of the law."

https://www.aeaweb.org/articles?id=10.1257/aer.20181289

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Bobbydadude01 t1_j72mu8o wrote

Don't just read the abstract.

Reducing displacement of current renters in the goal of rent control. That's the primary objective. It is not a fix all soluton to housing costs.

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relliott22 t1_j72o3zj wrote

The paper you cited saying rent control works actually says that rent control is counterproductive. The goal of rent control is to reduce rents, says so right in the name. Unfortunately, it doesn't work very well.

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Bobbydadude01 t1_j72q5zm wrote

No, the purpose of rent control is to stop rents from shooting up for current residents. Says so right in the same. Fortunate, it works very we.

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relliott22 t1_j72r586 wrote

That's not what the paper you cited says.

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Bobbydadude01 t1_j72rmp8 wrote

Yes it clearly does. Even in the abstract, which is evidently the only thing you read when doing research.

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relliott22 t1_j72sw2u wrote

My Dude, please take your own advice:

"We find that landlords actively respond to the imposition of rent control by converting their properties to condos and TICs or by redeveloping the building in such as a way as to exempt it from the regulations. In sum, we find that impacted landlords reduced the supply of available rental housing by 15 percent. Further, we find that there was a 25 percent decline in the number of renters living in units protected by rent control, as many buildings were converted to new construction or condos that are exempt from rent control.

"This reduction in rental supply likely increased rents in the long run, leading to a transfer between future San Francisco renters and renters living in San Francisco in 1994. In addition, the conversion of existing rental properties to higher-end, owner-occupied condominium housing ultimately led to a housing stock increasingly directed toward higher income individuals. In this way, rent control contributed to the gentrification of San Francisco, contrary to the stated policy goal. Rent control appears to have increased income inequality in the city by both limiting displacement of minorities and attracting higher income residents."

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Bobbydadude01 t1_j72tvge wrote

As I have stated, this reduces rent volatility for current residents but leads to increased rents in the future for new tenants.

New housing units reduces housing costs.

Learn how to read a paper.

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relliott22 t1_j731ohj wrote

It exacerbates the problem in the long term which makes it a poor policy choice. We should subsidize housing construction rather than imposing rent controls. Learn to draw conclusions based on what you've read.

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Bobbydadude01 t1_j733nyf wrote

It's proper usage is a short-term solution while long solutions are implemented or during economic emergencies.

Implementing rent control while increase unit construction would reduce housing costs in the short term while ensuring increased supply in the long term to counteract the supply affects of rent control.

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relliott22 t1_j734jmm wrote

Which is not what the proposed bill would do. The bill would give cities and towns the ability to impose rent controls. Not temporary emergency rent controls while they also increased supply. Just rent controls. Now, are you for or against the proposed bill? Because I'm against it.

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Bobbydadude01 t1_j735nmt wrote

And that has nothing to do with what I said. I have spoken about the concept of rent control, not specific policy.

But you should be able to figure out my opinion.

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