Rent control explained in 5 min.

 PragerU clears away the cobwebs imbedded in socialist beliefs about how the economy and humans work.  Reality and facts trump ideology and propaganda, but only if one keeps an open mind and seeks the truth.  Politicians on the Left think they can change human nature by passing laws and tinkering with social constructs.  When humans don’t react to the Left’s agenda, they don’t question their beliefs-the double down on regulations as if they can force the human form to fit their programmatic straight jacket,  

What if people were taught economics as a science rather than theology?  What if facts were elevated.above fiction?  

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Marxist theory of housing:  

Private property should be abolished.  No one should make a profit (profiteering) from housing.  

Where is the incentive or even the means to create rental or for-sale housing in a Marxist economy?  

If rent is so high that housing is becoming unaffordable to renters, stop rents from rising. 

Price controls limit supply of a product.  What is the incentive for people to invest in a politically-controlled consumer product or business?  What products will be controlled next? If stores have empty shelves and high prices now, would price controls make things better?  Of course not!  Housing is no different.  

Regardless of what burdens government places on them, landlords can afford to do more but they are just being greedy.

Some landlords struggle with expenses and need every cent of rent to pay for rising costs. Rent controls inhibit construction of new rental units and degrades NOAH (Naturally Occuri g Affordable Housing). Investors have other places they can invest their money. 

If housing demand exceeds supply, government will subsidize building affordable housing units to meet demand.  Higher taxes will pay for more housing. 

Government cannot meet the need for housing everyone who needs a place to live. It’s been tried with miserable results.  Government-subsidized housing costs more to build and operate than private housing ($400,000-$700,000 per unit), and far more per family than the existing Section-8 Housing Voucher program.  

Market-based housing practices:  

If rent is so high that housing is becoming unaffordable to renters, it indicates there is not enough supply of housing units to meet demand.  Investors and builders will create more housing until equilibrium is achieved. Affordability depends upon the extent of government regulations that affect land and construction, and labor and materials costs.  

There will always be vulnerable people who need housing assistance.*. This is best achieved with housing vouchers to be spent on private-market housing that gives renters choice about where to live for less cost than public-supported housing. Support the person, not the buildings.

* There is a need for government or NGO-sponsored housing for unique populations who need a special environment or support; people with developmental disabilities, debilitating mental health problems, physical impairments, specialized medical needs, felons, people with addiction problems, etc.  The reason many people do not fare well in regular rental units is some type of behavioral or medical issue that causes them to be evicted.  The best solution is to offer vouchers and look to profit and non-profit entities to provide special-needs housing.