The Santa Monica Daily Press recently reported that apartment
rents are rising in the city, and poorer tenants are losing their homes or are
getting priced out entirely.
rents are rising in the city, and poorer tenants are losing their homes or are
getting priced out entirely.
This outcome was inevitable. Rent control distorts property
and real estate markets to such an immoral degree, that single renters take up
expansive apartments without paying great expense, while families lose the
opportunity to rent larger apartments for themselves. On another note, middle
and upper income individuals (and criminals like Whitey Bulger of the Boston
Mafia) end up taking advantage of these ceiling prices, while the very people
who were supposed to benefit see no return on the lower rent prices.
and real estate markets to such an immoral degree, that single renters take up
expansive apartments without paying great expense, while families lose the
opportunity to rent larger apartments for themselves. On another note, middle
and upper income individuals (and criminals like Whitey Bulger of the Boston
Mafia) end up taking advantage of these ceiling prices, while the very people
who were supposed to benefit see no return on the lower rent prices.
Furthermore, property owners who cannot earn a healthy
return on their landed investments are more likely to demolish their properties
and sell the land, thus creating housing shortages, which in turn invites an
inevitable increase in rent prices, regardless of rent controls.
return on their landed investments are more likely to demolish their properties
and sell the land, thus creating housing shortages, which in turn invites an
inevitable increase in rent prices, regardless of rent controls.
In the 1970’s, my mother lived in Santa Monica, and she
loved it. As a nursing student who passed her state boards the first time, she
needed to live somewhere affordable. I doubt that she or any other college
student could find affordable housing in Santa Monica today, in large part
because of the backward rent control policies.
loved it. As a nursing student who passed her state boards the first time, she
needed to live somewhere affordable. I doubt that she or any other college
student could find affordable housing in Santa Monica today, in large part
because of the backward rent control policies.
Like gun control, rent control only hurts the very people
who were supposed to gain from those interventions. Santa Monica should rescind
the rental control board, and let the market, free of government distortions,
stabilize prices, and allow property investors freedom.
who were supposed to gain from those interventions. Santa Monica should rescind
the rental control board, and let the market, free of government distortions,
stabilize prices, and allow property investors freedom.