Quote (Santara @ Dec 19 2020 09:20am)
Rent control limits housing supply, so how can it drive down housing prices?
High end rentals get sold at permanent housing.
This causes permanent housing to lower in price as more supply enters the market.
Cheaper permanent housing causes rentals to be less appealing, which causes lower rental prices.
So you get a lower supply of rentals, with a higher supply of permanent housing.
This is shorter term. There are more effects in the longer term that may result in lower investment in new housing.
Like I said, it's a tool, not a silver bullet or the devil.
This post was edited by Thor123422 on Dec 19 2020 09:25am