Markets are the most efficient way to set prices that reflect maximum value and ensure maximum availability for renters. People meet in the middle and agree on what price is fair.
In the short term there are exception, but markets are also the most efficient way to bring prices and value back into alignment, when they get out of control, not interventions.
No matter how good our intentions, when we intervene it creates major problems.
Rent controls, for pricing or duration, might appear to fix problems in the short term, but they create major systemic problems that make the situation worse.
Rent controls might keep prices down, temporarily, but they drive landlords out, and availability down.
This leads to a lack of housing and either an increase in price or when restricted with controls, a decrease in value, poor accomodations, no repairs or slow repairs, and eventually slums.
There are no exceptions to this in the long term. This is played out everywhere, evertime.
As a former landlord I know why so many in the larger cities have resorted to short term rentals. Because the government got involved to the point where it was to big of a risk to offer long-term rentals. They created an environment that heavily favoured renters and abandoned landlords. Landlords didn't go to Airbnb because of greed. In many cases they just had no other choice because they couldn't afford to risk having a tenant that could stay for free.
Absolutely. We are making everything more expensive. Air BNB is a great market solution for a real problem. Intervening, creating red tape, or decreasing opportunity for a person to choose an affordable bunky over a hotel based on restrictive regulation is not a solution. It's nanny state hell.
WN' regulation is PC. Does not help to solve housing crisis.
Markets are the most efficient way to set prices that reflect maximum value and ensure maximum availability for renters. People meet in the middle and agree on what price is fair.
In the short term there are exception, but markets are also the most efficient way to bring prices and value back into alignment, when they get out of control, not interventions.
No matter how good our intentions, when we intervene it creates major problems.
Rent controls, for pricing or duration, might appear to fix problems in the short term, but they create major systemic problems that make the situation worse.
Rent controls might keep prices down, temporarily, but they drive landlords out, and availability down.
This leads to a lack of housing and either an increase in price or when restricted with controls, a decrease in value, poor accomodations, no repairs or slow repairs, and eventually slums.
There are no exceptions to this in the long term. This is played out everywhere, evertime.
As a former landlord I know why so many in the larger cities have resorted to short term rentals. Because the government got involved to the point where it was to big of a risk to offer long-term rentals. They created an environment that heavily favoured renters and abandoned landlords. Landlords didn't go to Airbnb because of greed. In many cases they just had no other choice because they couldn't afford to risk having a tenant that could stay for free.
Absolutely. We are making everything more expensive. Air BNB is a great market solution for a real problem. Intervening, creating red tape, or decreasing opportunity for a person to choose an affordable bunky over a hotel based on restrictive regulation is not a solution. It's nanny state hell.