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Old 08-11-2019, 09:10 PM
Kobal2's Avatar
Kobal2 is offline
Join Date: Mar 2008
Location: Paris, France
Posts: 18,627
Originally Posted by Ravenman View Post
My theory is that as locales realized that rent control is a failed policy, they relaxed those rules to encourage investors to build units that they would not have. This theory seems to be common sense, and fully supports the consensus of economists. Plus, I canít think of any other rational explanation for old vs. new policy.
Dunno about the situation in San Jose, but here in Paris rent control overwhelmingly applies (or rather, city halls tries to make it apply ; and the landlord unions dogs them at every turn) to buildings that fall under monuments historiques, i.e. housing old and pretty enough that they've become living museums that simply can't be torn down or even remodelled ; as well as other housing which can't be demolished or built higher for other reasons. The most common of which being that, Paris being built over a rabbit-hole mess of older Paris and subway lines and catacombs and disused mushroom-growing tunnels or limestone quarries like many old European towns, if you start messing around in there with heavy machinery or try to dig foundations deep enough for a big-ass tower, half the neighbourhood risks becoming one big cave-in.