Rent control has never proven to help in cities or neighborhoods in any significant way.
Not only that, rent control has led to restriction of rental stock because landlords don’t want to invest or rebuild and tenants who might otherwise buy or move up, don’t.
In San Francisco a landlord who had 6 rent control units wanted to tear down and rebuild a larger 300 unit building. the city gave him the option to make 60 units in his new building low income or he would have to rent control the entire 300 units, it didn’t pencil out so he didn’t build and add all those units to the housing stock. Because of regulation and government shortsightedness, the city lost out on increasing their housing stock by 294 units.
Rent control also creates slums because landlords don’t want to spend the money on fixing up or maintaining
But the biggest issue I personally have with rent control is a lot of us in the real estate industry use real estate investing as their future retirement. A lot of hard working people don’t have 401ks and pensions. A lot of us have taken taken big risks and have done with less to purchase a couple of rental properties for their families future.
In what other instance does the government tell a private person what they can charge for their product or what they can earn on their investment.
According to landlord station 28 million Americans are real estate investors. We’re not talking about the Irvine company or Shea homes we’re talking about people like you and me. 50% of the rental housing stock are single family or condos owned by individuals.
Real estate is a vehicle out of the lower class into the middle class and out of the middle class and into the upper class. As with any other area of the market, the market solution, not the government one, is the best solution in addressing our current affordable housing crisis.
We in the real estate business need to stand up for private property rights, one of our most basic rights as Americans to own property without government interference. Rent control is bad for our communities, it’s bad for our industry and does way more damage than good.