Rent control is a popular method for the government to interfere with local real estate markets. In the ideal situation, the government will not interact. Landlord wishes to rent out and the renter wishes to live there.

In the real estate market are not all landlords the same. Some landlords own big buildings. Some have mortages. Some are industrial investors and some have a piece of real estate to support future retirement.

The difference in the landlord situation is important to realize. Government regulation will hurt just all. The government treats all landlords the same and imposes bad regulatory.

The reason governments impose things like rent control is to allow those who can’t afford the rent are somehow protected.

In a free market, the landlord can simply rent out to anyone they prefer. Basically meaning they can make money on a transaction. The profits are there for the landlord. The leaser has an increased standard of living.

So let’s have some look at what the government is doing to hurt the renters. By limiting the building of skyscrapers the supply is being reduced. Reduced supply results in higher rents.

Then we look at the subletting. By limiting this the government is reducing the supply. By doing so the supply is being reduced. This will lead to increased rents.

When those things happen the popular response is rent control. The government limits the rent you can charge and demands you to launch money-losing real estate projects.

But an efficient solution would be simply to allow more building. Get more skyscrapers being built. By increasing supply the prices will, ultimately, go down.

Rent control is supposed to help the poor and homeless. But it is only increasing rents. how are high rents supporting those in need and struggling to pay rent?

What is the need for increased rents? Why not start doing something which is worth trying. Just because it works?

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