Comment by mistersquid

Comment by mistersquid 2 days ago

> Rent control is not a great solution long term since it reduces the incentive to build more housing which is the only real fix.

In California (and SF in particular) rent control applies to housing older than 15 years and owned by corporate entities.

How does rent control applied as it is in California disincentivize building? I would think that building would be incentivized by rent control because newer housing stock would be exempt from rent control.

nxm 2 days ago

Long term they wouldn't be, and hence lower ROI and therefore disincentivized

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mistersquid a day ago

> Long term they wouldn't be, and hence lower ROI and therefore disincentivized
While the ROI would be lower compared to allowing rent to increase uncontrolled, in a rent control zone there is more incentive to build (and renovate) to take advantage of market rate leases for (in California's case) 15 years.
Does the argument that rent control (as in California) disincentives building reduce to the argument that uncontrolled rent yields a higher ROI than rent control?
Such an argument is a refusal to allow public good for the benefit of landlords.

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