Stupidity doesn’t just belong to Oregon. Sadly, St. Paul residents are falling for the big lie also. No doubt rent control measures will continue its spread to other parts of the country sooner rather than later. Will any state be spared? Economic education in the country is so poor that people have little understanding of what the unintended, but entirely predictable, consequences of anti-landlord and anti-property-rights regulations’ will be: fewer housing units will be built, demand for all housing will increase so that even existing homes, no matter how expensive they are now, will cost even more.
Why should you worry? Unless the public gets smart - fast! - and realizes incentives work better than onerous restrictions on real estate investing, the outlook for private homeownership is dire. After all, why should someone who owns a house prosper from rising home prices while others suffer from rising rents or non-existent housing options? When will some addle-brained politician decide that taxing people on their home equity is a good idea? It sounds fair and equitable doesn’t it?. Tax proceeds will go to public or other “affordable” (aka subsidized) housing for those who can’t afford a home of their own. Wait, isn’t that what the new Metro housing tax is about?
As the percentage of the population who are renters grows, the pressure on not just landlords whose numbers will stagnate or dwindle, but on homeowners to subsidize rental housing will grow. Too bad people don’t have faith in the free market market where entrepreneurs emerge to supply products (homes) in response to increased demand.
National Multifamily Housing Council
St. Paul Election: ‘Yes’ On Rent Control Currently Winning
MINNEAPOLIS (WCCO) — St. Paul residents look to have voted Tuesday to pass a rent control policy that would be one of the most stringent in the nation.
The initiative, which as of 11 p.m. Tuesday had 53% approval with all but two precincts reporting, would cap annual rent increases in the city at 3%, with only certain exceptions for property tax increases and major improvements.
Advocates say the policy will protect low-income renters from unfair profiteering, specifically for renters of color. Opponents, however, said that rent control will hurt housing development in the city, leading to only higher prices for renters.
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