Therefore, the demand for rent-controlled apartments will be enormous. In New York City, some old rent-controlled rooms have become heirlooms. In 2021, a woman went viral on TikTok after showing off her renovated $1,300-a-month, rent-controlled, two-bedroom apartment on the Upper West Side that she inherited from her parents. Open market. In Stockholm, Sweden, where strict controls have been in place for decades, the average waiting time for a rent-controlled room will be nine years by 2021 and could now exceed 20 years. .
The supply-side response is also consistent with economic theory. In 1994, the city of San Francisco extended rent controls to small apartment complexes, which had previously been exempt. According to one study, the supply of rental housing from affected landlords fell by 15 percent, and the number of renters living in such units fell by a quarter. The low profitability of rental units has led many landlords to sell such units as owner-occupied condominiums. A 2007 study of the Boston metropolitan area by economist David P. Sims found the flip side of that was that the end of rent control increased the supply of rental housing.
This is from Under Rent Controls, Everyone Pays by Jeffrey Miron and Pedro Aldighieri, edited by Ryan A. Vaughn. War on Prices: How Common Misconceptions About Inflation, Prices, and Values Create Bad Policy. The book is on sale today and can be ordered on Amazon.
The blurb for this book is as follows:
“Price War is a great book. It makes a comprehensive case that price controls often do great harm to the people they are meant to help. Particularly good are rent controls, This chapter is about oil and gas price regulation and so-called junk fees, which are actually fees that solve problems that would exist without them.Why we need a free market for water. My fellow Californians and I would be better off if the chapters were kept in mind. Read and study this book.” — David R. Henderson, Hoover Institution Fellow, “The Concise Encyclopedia.” Editor of Pedia of Economics.
