{"id":6159,"date":"2023-03-16T07:50:17","date_gmt":"2023-03-16T07:50:17","guid":{"rendered":"https:\/\/imsfund.com\/?p=6159"},"modified":"2023-03-16T07:50:17","modified_gmt":"2023-03-16T07:50:17","slug":"why-rent-control-wont-solve-the-issue-of-high-rents-in-the-u-s","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/03\/16\/why-rent-control-wont-solve-the-issue-of-high-rents-in-the-u-s\/","title":{"rendered":"Why rent control won&#8217;t solve the issue of high rents in the U.S."},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"group\">\n<p>In December 2022, $1,981 was the <a href=\"https:\/\/www.zillow.com\/research\/december-2022-rental-report-31992\/\" target=\"_blank\" rel=\"noopener\">typical monthly rent<\/a> in the United States \u2014 a 7.4% increase from the year prior. But while rent has begun to stabilize nationwide, rent affordability remains difficult for many Americans.\u00a0<\/p>\n<p>&#8220;There&#8217;s literally nowhere in the country where a tenant is not burdened by their rent,&#8221; according to Leah Simon-Weisberg, an adjunct professor of law at UC San Francisco.<\/p>\n<p>In response, support for rent control policies has gained traction.<\/p>\n<p>But this isn&#8217;t the first time such policies have had widespread support. After the massive economic disruption caused by World War II, the federal government imposed rent control on roughly <a href=\"https:\/\/www.cambridge.org\/core\/journals\/journal-of-economic-history\/article\/home-front-rent-control-and-the-rapid-wartime-increase-in-home-ownership\/171D34C6E02790944799DD9BB808835A\" target=\"_blank\" rel=\"noopener\">80% of rental housing between 1941 and 1964<\/a>.<\/p>\n<p>Over time, it was abandoned because prominent economists unanimously argued against the policy. That sentiment mostly continues today.<\/p>\n<p>&#8220;There are various surveys of economists. One done by <a href=\"https:\/\/www.igmchicago.org\/surveys\/rent-control\/\" target=\"_blank\" rel=\"noopener\">IMG showed that only 2%<\/a> thought that rent controls in places like New York and San Francisco were having a positive impact on affordable housing,&#8221; said Jay Parsons, chief economist at RealPage.<\/p>\n<p>Economists argue that rent control would deter developers from building more homes, which would only worsen the housing supply crisis in the United States.<\/p>\n<p>America already suffers from <a href=\"https:\/\/www.habitat.org\/costofhome\/2022-state-nations-housing-report-lack-affordable-housing#:~:text=The%20undersupply%20of%20housing%20continued,at%20low%2Dincome%20price%20points.\" target=\"_blank\" rel=\"noopener\">a deficit of 3.8 million homes<\/a>, especially at low-income price points, according to Habitat for Humanity.<\/p>\n<p>&#8220;We have not invested as a nation in building the supply of housing in a variety of communities, in a variety of different price points. We&#8217;ve instead relied on the private sector to do so,&#8221; said Sharon Wilson G\u00e9no,  president of the National Multifamily Housing Council. &#8220;But unless that money comes into the market and investors see that as a better investment than some other kind of equity or some other kind of investment, they&#8217;re not going to come.&#8221;<\/p>\n<p><strong>Watch the <\/strong><a href=\"https:\/\/www.cnbc.com\/video\/2023\/03\/15\/how-rent-control-policies-affect-housing-affordability.html\"><strong>video<\/strong><\/a><strong> to find out why so many economists are against the idea of widespread rent control.<\/strong><\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2023\/03\/15\/why-rent-control-wont-solve-the-issue-of-high-rents-in-the-us.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In December 2022, $1,981 was the typical monthly rent in the United States \u2014 a 7.4% increase from the year prior. But while rent has begun to stabilize nationwide, rent affordability remains difficult for many Americans.\u00a0 &#8220;There&#8217;s literally nowhere in the country where a tenant is not burdened by their rent,&#8221; according to Leah Simon-Weisberg, [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":6160,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107173391-1672775325402-gettyimages-1241895325-HOUSING_RENTALS.jpeg?v=1678891436&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-6159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=6159"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6159\/revisions"}],"predecessor-version":[{"id":6161,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6159\/revisions\/6161"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/6160"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=6159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=6159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=6159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}