Check out this incredible video by John Stossel on rent control, where he leaves an advocate of rent control literally speechless after asking a basic question about the effects of rent control on new housing:
Rent control is a failed policy idea that will only make housing less affordable in the long run. If Nevada politicians really want to help, they should make it easier to build new homes and apartment buildings, which is the best way to make housing affordable for all. In Washoe County, rent and housing prices are inflated in large part due to government licensing and permitting fees that can add an additional $30,000 to $40,000 to the cost of building a new home. Those kinds of fees should be cut in half.
In addition to fees, however, local governments also impose an array of onerous compliance regulations that further increase costs. In fact, some developers report that simply complying with all the various levels of bureaucracy can delay the construction process by a full two years which, once again, means less supply and higher prices. Reducing or eliminating those barriers is the best way elected officials can help renters out. Rent control will only make things worse, as it has everywhere else it has ever been tried.
For more on rent control, please see the additional resources listed below:
- The Horrid Consequences of Rent Control
- Rent Control Means Fewer Homes, and Higher Prices
- Free to Offend, Episode 51: Don’t rent-control your way into being ‘California East’