Why Rent Control Might Be A Bad Idea

$1,981 is the typical monthly rent in the United States based on most recent data. More than 19 million renters are considered ‘rent-burdened’, spending more than 30% of their income on housing costs. As concerns over rent affordability mounts, support for rent control policies have also gained traction. So can policy make rent more affordable in the United States? And if so, what would it look like?

Economists argue that rent control would deter developers from building more homes, which would only worsen the housing supply crisis in the United States.

America already suffers from a deficit of 3.8 million homes, especially at low-income price points, according to Habitat for Humanity.

“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’ve instead relied on the private sector to do so,” said Sharon Wilson Géno, president of the National Multifamily Housing Council. “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’re not going to come.”

Watch the video to find out why so many economists are against the idea of widespread rent control.

Chapters:
01:45 — Rent control
04:37 — Implications
08:38 — Federal policies

Produced by: Juhohn Lee
Additional Camera: Charlotte Morabito
Supervising Producer: Lindsey Jacobson
Graphics: Jason Reginato & Alex Wood
Special thanks to: Communities Resist

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Why Rent Control Might Be A Bad Idea

[kimbarber]

People sometimes forget that there are the corporations who own multiple buildings with multiple units, and there is the little old lady who has a duplex and rents out half to supplement her social security. We need to make housing affordable without bankrupting the smaller players. We can't let the corporations have a monopoly, or what has happened to the price of insulin will also happen to the cost of housing.

[si]

Prices are insane. It’s unaffordable and unattainable. I’m tired of the greed. To pay for an average rental you have to make $85k to live comfortably. It’s crazy. Something needs to be done or we are going to be in big trouble.

[neilvokey]

Renter in a rent stabilized unit: I feel protected and can afford to live in my community
Experts: Rent control actually hurts renters and marginalized communities!
Hmm, right.

[NickJacksonusa]

I own rental properties and I've been trying to keep rents as close to the same as possible, but everything has gotten out of control expensive. Property taxes, new taxes on rentals, crazy high water bills, HOA increases, repairing anything, or buying new appliances. Everything is literally double. If people can't afford to rent, they definitely can't afford to own

[DillDoughu]

I’m a landlord and haven’t raised the rent on my tenants; however, I do understand why some landlords would need to raise it. Both insurance and property taxes have gone up drastically the past two years on my rentals, so and I can see why some landlords might make up those costs with raising the rent.

[yoanmorales]

We need rent control in Miami fl BIG TIME $2500 dollars for a apartment unbelievable

[waltermilliken]

Greed is causing many homeless families, consequently greed its ruining this country.

[neonnoir]

Stop giving everything to the poors. We're paying for all of it and we can't afford our own stuff now. Literally destroying the middle class.

[donnaanderson]

People should just buy if they don't want to deal with the high prices of rent going up because that's the whole beauty of owning the property as opposed to Renting because you have more control over your finances after years of being there if you chose to

[LaceratedDJ]

Rent should be tied to the Minimum wage, as most sources will cite only 30% of a persons income should go to rent yet myself included pay over that by as much as 75%.

[addanametocontinue]

Perhaps rents should be capped to a % of what homes in the area cost. I know, home prices are gone up like crazy, but I believe rents have increased at a far greater rate.

[quartytypo]

Don't need rent control. Bring back rooming houses. People should have a choice other than expensive mortgages and high rents. What's left is the disaster of sleeping in your car which is dangerous and illegal.

[FordDraper]

I am not saying rent prices are not out of control because they are, but rent control and price caps only escalate the housing crisis.

[MrHavk]

Dissuading more construction which is what rent control does will not solve your issues. You need more units and you only get more units if those units are profitable to build. This is true for both apartments and homes.

The GFC really set us back generations because of the lack of housing starts. It only became profitable to build at the high end and well..

[jeffstarrunner]

"Rent control was abandoned after we tried it for 20 years, and it was working so well, but even though everyone was happy and prosperous, it was abandoned because of those pesky economists; boy they have the politicians in their pockets."

[vgentry]

This has been tried several times before. Go back and ask the cities and towns that have tried this previously and see how it ended up. You will find that it doesn't work as expected. If landlords can't raise the rent to cover their cost they will not keep buildings maintained.

[he-man]

The heck with 30% rule, I pay 100% of my income on rent here in NYC.

[sidehustlevikki]

I hate hearing “renovations”. Most of the renovations are cosmetic for the purpose of raising rent. My apartment complex did renovations added stainless steel appliances and granite countertops in bathrooms and kitchen. That’s great but I’ve still got roaches, some buildings have mold, some of my neighbors have roofs that leak security gate doesn’t work and no one monitors the grounds at night despite there being multiple break ins. Like upgrades are nice but as a renter I feel like cosmetic upgrades should come after ensuring that your renters have a safe habitable place to live. It’s all about the money

[jacobnapkins]

We need rent control, landlords should go get real jobs.

[.gpa]

Capped rent is theft against landlords. They aren't in the business of doing it as charity; they have bills to pay.