"Rent control is one of those policies that continues to attract the favor of the public despite the fact it has repeatedly proven to be ineffective when it comes to improving the lives of those it is aimed at.
The latest example can be found in Sacramento, California, where a group of people has put forward a proposal that, if passed, would cap rent increases at 5 percent a year. For the moment, the proponents are still in the process of marching to gin up support and collecting signatures to put the reform proposal to a ballot.
The Ongoing Californian Housing Crisis
This initiative can be better understood if framed within the affordable housing crisis in which California has been immersed over the last several years. Since 2012, both home and rental prices have skyrocketed: the median cost of homes has increased by 77 percent, whereas rents have gone up by around 35 percent.
As usual, politicians’ recipes have done little to tackle the underlying causes. Last year, Governor Jerry Brown signed into law 15 bills which, among other things, will increase spending on affordable housing by $1 billion a year over the next few years."
https://fee.org/articles/rent-control-advocates-need-a-lesson-in-economics/
The latest example can be found in Sacramento, California, where a group of people has put forward a proposal that, if passed, would cap rent increases at 5 percent a year. For the moment, the proponents are still in the process of marching to gin up support and collecting signatures to put the reform proposal to a ballot.
The Ongoing Californian Housing Crisis
This initiative can be better understood if framed within the affordable housing crisis in which California has been immersed over the last several years. Since 2012, both home and rental prices have skyrocketed: the median cost of homes has increased by 77 percent, whereas rents have gone up by around 35 percent.
As usual, politicians’ recipes have done little to tackle the underlying causes. Last year, Governor Jerry Brown signed into law 15 bills which, among other things, will increase spending on affordable housing by $1 billion a year over the next few years."
https://fee.org/articles/rent-control-advocates-need-a-lesson-in-economics/