How Rent Control Hurts Renters

Everywhere it's tried, rent control harms the people it's meant to help. Yet foolish politicians continue to implement it.

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Rent for housing is up 11%.

To “fix” that, St. Paul, Minnesota just imposed uniquely strict rent control.

It applies to existing housing, and new construction.

The city is repeating mistakes many have made in the past.

Rent control once destroyed much of my town, New York.

Because landlords couldn’t make money, some set fire to their own buildings to collect insurance.

The late economist Walter Williams once told me, "Short of aerial bombardment, the best way to destroy a city is through rent controls.”

But the politicians don’t understand that.

In my new video, I confront a socialist city councilwoman from St. Paul’s sister city Minneapolis. She’s eager to control rents.

[metalmanization]

"Asking a socialist where prices come from is like asking a 6-year old where babies come from."

Thomas Sowell, paraphrased

[lauriec]

The moment she paused and knew she was wrong was a glorious moment.

[dianamgutierrez]

All I know is that rent is too damn high and that needs to change.

[liadam]

I will give that lady the credit for giving the honest silence instead of blushing out some nonsense words to cover it up.

[Stevarooni]

"We don't need more studies!"

Good, just use centuries of history and what happens _every time_ without spending more on studies.

[loviatar]

People hate when you try to explain the complexities of an issue. Too many people just want a view they can easily chant.

[Opeandaway]

You know what else hurts the renter? Slumlords who just paint over everything and then charge 1500 a month for a studio apartment in the middle of the ghetto.

[TheSloppiestJoe]

One of the best examples of cognitive dissonance playing out on a human being's face in real time.

[dskyy]

This politician demonstrates the failure of our education system.

[JamesZaraza-wvgt]

I worked both in the Twin cities and Chicago as a union carpenter during the building boom. I wouldn’t want any of the units that I built, even the high end. Green building has been extensively advocated since the 70’s as a more sustainable approach to building. However, when the free market is allowed to go unchecked, you get real estate agent demanded finishes, unusable square footage, minimal insulation and framing, and a “tail light warranty”. Not only do renters deserve better, but homeowners who plan to ride out their mortgage do as well. What I love about St. Paul is the wealth of knowledge and skills laying untapped beneath the surface. Even if it takes the largest rollout of non-for-profit projects ever witnessed, they will find a way. Viva la socialism🥳

[MorphingReality]

According to iPropertyManagement, 0.11% of rental homes are rent-controlled, and a minimum wage worker would have to work 127 hours a week to afford an average apartment.

[FEV]

Insane to watch a human actively and proudly chose an emotional position over a statistically proven and reality based option. Seeing her answer simple criticisms was like watching a child's mind reboot so they could ask for candy again.

[SomeTomfoolery]

I was blown away by how loud those pauses were, they spoke volumes. I respect her greatly for agreeing to come on in the first place. I can only pray those moments of silence become moments of real self-reflection for her. Outstanding video, thank you Stossel.

[Cannisseur]

Rent is getting out of hand though.... $3000 per month for a standard to small 3 bedroom is ridiculous. Especially when you can see what the LL paid for the property.... The owners are gouging renters. Nothing wrong with making some $ on your investment but doubling and tripling the mortgage is morally unjust.

[marcelhurtado]

Hello Stossel, I don’t hold any views on laws like rent control, but I believe you are a little mistaken because the problem with properties in recent years is that corporations have turned their buildings into a huge ponzi scheme.

I’m from Los Angeles and I have seen buildings and other rental places bought up by large corporations who in turn raise prices 200% without doing any major renovations. These are tenants who have lived in their places for 20+ years. They have been forced to get roommates or move to the ghetto just to pay their monthly rent. (This happened to my Dad twice in the last 20 years, and he is middle income.) I’m not just talking about nice buildings here. I’m talking about anything build after 1975. To say that there is a need other than greed is a mistake. I’m not even saying you are mistaken about new beautiful developments. I’m talking about old crappy or standard ones. When the new corporations buy a building, if they don’t raise prices, they can’t show that the property has increased in value. Do you know how many empty apartments there are in California? It doesn’t fall under the traditional law of supply and demand, because they don’t care about rental fees, just the value of the property, they are putting every renter in the state into a ponzi scheme. I know you are a great investigative journalist, please show the audience how these massive companies are treating humans like feudal peasants.

[SirKenchalot]

"We don't need math or economics; We need solutions that make us feel and look good!'

[GabeSweetMan]

The fact that she seems to have been genuinely considering what John was asking rather than immediately attacking his character out of partisan ideological possession gives me some hope for her eventually coming around to a more libertarian perspective. Unfortunately it won't be until after the damage is done.

Ignorance is no excuse.

[BeeRumblin]

My rent went up $30 u.s. dollars last year. This year i just got my lease renewal and it went up $300. For an apartment in the borderline ghetto. Where do people move to when rent gets that high? Gas is more, food is more, rent is more. I wasn't poor 2 years ago. Now i am.

[xvjustvxfps]

Supplying more housing doesn't make rent go down. I've never seen, "rent go down". These big companies don't need $1500 a month for a one bedroom to be able to afford materials. This is the same reason there are laws against monopoly. This is greed.

[franciscodanconia]

The scariest part of that interview with the Minneapolis councilwoman was not that she was ignorant (and annoyingly rolled her eyes every time she was asked a hard question), but that she was unwilling, when confronted with facts, to acknowledge them since they didn't fit with her ideology.

Exactly like Obama when he was confronted in that debate when he was asked if he'd support cap gains tax hikes even if those hikes resulted in less tax revenue. The ideology is more important than the outcome.