You lefties probably think that "rent control" holds down rent prices. Realizing the facts will take you one step in your progression away from left-think. Here's an article about a rich cat in NYC. So much lucre that he gave some NYC university $2.9. But he lives in a tiny apartment.
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Why does he live here? “Ever hear the words ‘rent stabilized’?” says Mr. Podell, who’s paying $702 for a one bedroom in SoHo. “What do I need a fancy place for? A lot of people want to show off their wealth. It ain’t me, baby.”
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How cute. With rents coming in at $702 in Manhattan, the owner has zero incentive (or money!) to fix up the place. And others with access to capital have no incentive to build units in the lower price ranges, lest they get designated for some price-control requirement. "Rent control" causes shortages; shortages cause price escalation. One reason for the soaring NYC real estate prices is the very existence of rent control.
2007-03-29
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2 comments:
"One reason for the soaring NYC real estate prices is the very existence of rent control."
Which is the very reason real estate agents haven't lobbied to have rent control abolished.
That could very well be.
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