/biz/ - Business & Finance

they do 'work'

they cap how much return people get, which in turn negatively impacts how much risk they take, ruining the market in the long term

same reason regular price caps don't work, artificially fucking up supply and demand fucks the efficiency of the market and causes imbalances

>>54690962
> Takes banker cock out of mouth
Well econ 101 clearly states....
> Continues talking shite about disincentivising support
> Finally puts banker cock back in mouth
Just like >>54691013

>>54690962
they do work. landlords will claim that rent caps prohibit capex and inhibit maintenance. meanwhile they only carry out capex when they can use it as an excuse to price gouge, and they only carry out maintenance when a tenant threatens legal action. it's yet another case of the jew crying out in pain as he strikes you.

>>54690962
A family with 3 kids and 2 small dogs just moved into the apartment next to me. They're loud af already. I hope the rent fucking doubles again this year. I can afford it but I hope they dont.

to answer your question: rent caps dont work because the landlord can just do a "luxury renovation", this will bypass any rent caps.

Boomers want to profit From real estate and rent caps will pop the housing bubble by deincentivising landlording

>>54691013
The market is no efficient. Cardboard boxes going for 1 million is not efficient

>>54691013
kill yourself capitalist dog

>>54691132
>>54691231
>caps a product
>is surprised when you can't find shit anymore and no one wants to produce it
Could you guess why?

>>54691231
Show the callouses on your hands, comrade. If you don't have callouses then you are part of the class you profess to hate.

>>54691083
That's simply a loophole, not a proof rent caps don't work

>>54691268
Everyone wanted to produce houses back when rent was low though

>>54691268
>implying single family homes are being built in the last 3 decades
Lol, lmao even. Drive by any construction site and its either mcmansions sharing 1/8th an acre of lawn or apartments

>>54690962
Adam smith was right

>>54690962
Rent cap works if you want poors living next to you.
Basically you can't outbid poors so they live next to you.

>>54691560
Rent would still be lower with rent cap you dum dum.

Maybe you brainlets could help yourselves by imagining all housing producers as a single corporation. Now, there's a decree cutting this company's profits in half. What happens to the size of the company? Only wrong answers, obviously

>>54690994
This is correct.
It leads to lack of investment which leads to under-construction, tightening of supply, which without the rent cap would typically lead to private sector investment but in this case simply worsens the situation because no matter how tight the market you can't raise rent.
Causes black market activity, bribes, etc.

>>54690962
Because there aren’t any tax caps

>>54690962
>put a cap on rent so it can no longer keep up with building costs
>people just invest elsewhere and massive shortages crop up
>NIMBY retards demand no new construction at all, making shortages even worse

>>54691051
why throw good money after bad if you're not able to earn a sufficient return on that capital?

I'm not upgrading shit to my fucking building if I can only push rents on renewal at sub-inflationary levels due to government intervention. I want to make your life miserable so you leave and I can finally roll rents to market. Then I'll upgrade.

>>54691560
construction costs were cheap as fuck then. They're prohibitively expensive now with no end in sight, which makes pro-formas for development make no sense when your upside is capped

>>54690962
Price is a signalling mechanism to market actors, if you manipulate price you distort that signal and the supply/demand of the market also becomes distorted. On the supply side, a price cap will cause acute shortages while a price floor will cause oversupply. Demand side, price cap causes excess demand and a price floor dampens demand.

guy let's leave this problem to the based free market. it's simply the case that we aren't giving jewish landlords enough money and leeway to realize greater market efficiencies and pass the savings on to the renter.

>>54691822
>This is correct.
>It leads to lack of investment which leads to under-construction, tightening of supply, which without the rent cap would typically lead to private sector investment but in this case simply worsens the situation because no matter how tight the market you can't raise rent.
>Causes black market activity, bribes, etc.

But that solution feels good. Like UBI, MMT, price control and socialism in general. Who cares if it makes things worse long term and increases net human suffering?

>>54691906
>rent has been rising faster than wages for decades
>so lets vote for more big government which always solves our economic problems!

>>54691906
Now add net migration to your chart, which is a dampener of wage growth and a catalyst for rental demand

>>54691083
people with dogs and wall-to-wall neighbours are selfish people, and usually filthy too. why can’t they just own a comfy cat rather than a yappy coombrained dog who needs attention constantly and barks like a retard when it detects the movement of a single molecule

>>54691928
>good jew/bad jew false dichotomy
let's vote for based small government (big business) politicians who want to truck in millions of additional brownoid slaves, who will live 10 to a one bedroom apartment. JEWSA! JEWSA! JEWSA!

>>54690962
SQUIRTLE

>>54691032
Wtf do bankers have to do with rent? Do you mean jews? Go back to watching hassan you goober

>>54691943

this. look at thr japanese real estate market for what you could have had if america was still white