in December 2022, was $1,981 normal monthly rent In the United States – an increase of 7.4% over the previous year. But while rents have begun to stabilize nationwide, many Americans find it difficult to afford rent.
According to Leah Simon-Weisberg, an assistant professor of law at UC San Francisco, “there is nowhere in the country where a tenant is not burdened with their rent.”
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In response, support for rent control policies has gained traction.
But this is not the first time such policies have found widespread support. After the massive economic disruption caused by World War II, the federal government largely implemented rent control. 80% of rental housing between 1941 and 1964,
Over time, it was abandoned as leading economists unanimously argued against the policy. That sentiment mostly continues today.
“There are various surveys of economists. One done by IMG showed that only 2% thought that rent controls in places like New York and San Francisco were having a positive effect on affordable housing,” said Jay Parsons, chief economist at RealPages.
Economists argue that rent controls will prevent developers from building more homes, which will only worsen the housing supply crisis in the United States.
america is already suffering Shortage of 3.8 million housesEspecially at low-income price points, according to Habitat for Humanity.
“We as a nation have not invested in building a supply of housing at various price points, in various communities. Instead we have relied on the private sector to do so,” said Sharon Wilson Geno, president. National Multidimensional Housing Council. “But until that money comes into the market and investors see it as a better investment than any other type of equity or any other type of investment, they’re not going to come.”
see Video Read on to find out why so many economists are against the idea of comprehensive rent control.