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Old 08-11-2019, 07:35 AM
Ravenman is online now
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Join Date: Jan 2003
Location: Washington, DC
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Quote:
Originally Posted by Kobal2 View Post
Huh ? How does that follow ? Why would a low vacancy rate be a bad thing ? More people get housed, more people get paid than anywhere else, isn't this the ideal ?

(real question - I'm not trying to be a bitch or nothing)
Itís indicative of lack of supply of housing. Rent control (among other bad policies) not only dissuades the construction of new units, but generally the longer someone stays in rent controlled housing, the better deal they have on the place, so they are strongly disinclined to move and end up staying for a very long time, reducing the fluidity of the market. (Think about how younger workers complain about old-timers who just will never retire to open up better jobs - itís exactly like that but with housing.)

A better situation for any market is to have a balance where both those who are looking to buy and looking to sell have more choices on what suits their needs. If supply is tight, buyers will have to settle for things that arenít really what they want and at a higher price, because sellers arenít having to compete on price or quality.

Broad surveys of economists of all stripes show a consensus that rent control measures lower the quality and availability of affordable housing.
http://www.igmchicago.org/surveys/rent-control