Why rent control won't solve the issue of high rents in the U.S.

In December 2022, $1,981 was the typical monthly rent successful the United States — a 7.4% summation from the twelvemonth prior. But portion rent has begun to stabilize nationwide, rent affordability remains hard for galore Americans. 

"There's virtually obscurity successful the state wherever a tenant is not burdened by their rent," according to Leah Simon-Weisberg, an adjunct prof of instrumentality astatine UC San Francisco.

In response, enactment for rent power policies has gained traction.

But this isn't the archetypal clip specified policies person had wide support. After the monolithic economical disruption caused by World War II, the national authorities imposed rent power connected astir 80% of rental lodging betwixt 1941 and 1964.

Over time, it was abandoned due to the fact that salient economists unanimously argued against the policy. That sentiment mostly continues today.

"There are assorted surveys of economists. One done by IMG showed that lone 2% thought that rent controls successful places similar New York and San Francisco were having a affirmative interaction connected affordable housing," said Jay Parsons, main economist astatine RealPage.

Economists reason that rent power would deter developers from gathering much homes, which would lone worsen the lodging proviso situation successful the United States.

America already suffers from a shortage of 3.8 cardinal homes, particularly astatine low-income terms points, according to Habitat for Humanity.

"We person not invested arsenic a federation successful gathering the proviso of lodging successful a assortment of communities, successful a assortment of antithetic terms points. We've alternatively relied connected the backstage assemblage to bash so," said Sharon Wilson Géno, president of the National Multifamily Housing Council. "But unless that wealth comes into the marketplace and investors spot that arsenic a amended concern than immoderate different benignant of equity oregon immoderate different benignant of investment, they're not going to come."

Watch the video to find retired wherefore truthful galore economists are against the thought of wide rent control.