The WSJ (Oct. 2019) reports on the bill passed in CA to control rent. Here are two money quotes.
- "The governor has said the rent caps and tenant protections are necessary to help people being squeezed out of their homes. The law limits annual rent increases at 5%, plus the rate of inflation, and adds some barriers for landlords seeking to evict people."
- "'Rent caps don’t solve the housing crisis,’ said Matthew Lewis, a spokesman for California YIMBY, which advocates for more housing and co-wrote high-profile statewide rezoning legislation known as Senate Bill 50 that was back-burnered until next year. 'The root of the problem is a shortage of housing, and it is a severe, long-term shortage.'”
Questions:
- Who gains and who loses?
- Do rent controls increase the quantity of housing?
- Do rent controls create or reduce shortages of housing?
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