Caleb Hammer explains why rent control doesn’t work “It’s one of those policies that sounds really good and really moral. You want to support it, landlords make less money and people pay less rent. But everywhere it’s been enacted, permitting has dropped significantly, and rents have gone up even... faster for the average person, except for the few lucky ones in subsidized housing” “Units go untouched and aren’t maintained at all. I think something like 10-20% of rent controlled units in New York are empty because they can’t be brought up to standard, since it’s not worth investing in. In Massachusetts, rent control was a complete disaster and had to be repealed. In San Francisco, the moment they introduced it, permitting dropped. It just hasn’t worked”show more

You're also leaving out that the other apartments that are not rent controlled then have their rent increased to make up for the lost revenue, screwing everyone.

"Yeah but despite all the evidence that it never works and in fact makes things a lot worse, we should try it again"

If you can't keep your rents controlled or units up to code, stop buying housing like it's an investment instead of a basic need. 'rent control doesn't work cause landlords find other ways to rig the game!' Get rid of them!

There's scarcely an issue that economists agree on to the extent they agree on rent control, “the fastest way to destroy a city, save for bombing”👇

EVERY leftist idea sounds good on paper, but doesn't work in the real world. That's why EVERY leftist country fails One reason America has been so successful is that it's the FREEST market on earth. The further we get from that, the more likely that America fails Freedom Works

stockholm, berlin, most of china - all tried it, all failed. it actually helps only the wealthy bc the only new inventory is luxury out of fear a lower income build would get frozen. middle class REALLY gets pinched bc rent controlled inventory goes away, so demand for mid-tier skyrockets

Look at what happened to the Austin rental market after they allowed a ton of building.

Rent control works... to create a disgruntled lower-class of revolutionaries.

No kind of price control works in the long run

I don't understand the mindset from which rent control seems "really moral." I get that many people feel that way, but it's totally alien to me.

Why is "landlords make less money" even seen as the moral position? Say that about any worker. "Hey, wouldn't it be great if you just made less money so you could charge your customers less"?

Rent control is literally saying to someone "You must help pay someone else's rent because you invested in real estate instead of the stock market." Great for the market, but not so good for real estate or the people who own it.

Feat. @sircalebhammer @TheICHpodcast

NYT columnist and Nobel Prize winner Paul Krugman wrote about Rent Control as the best example of a proposal that ALL economists -- Left, Right, Center, Radical, Classical, Brilliant and Plain Crazy -- all agreed upon. It's a dumb idea that never works. Krugman points out in the absence of ordinary rents new creative fees called "key money" or "curtain charges" or whatever get added on to the [regulated] rent to move the total transfer from tenants to landlords towards a more-nearly market level amount.

So what’s his solution for uncontrolled rent increases then? It’s a problem… what’s his solution?

The problem is rent control needs to match inflation. That's why you get a 1 bedroom apartment in the West Village NYC that is $800 a month when it should be more like $3000 a month. Why would a landlord fix/maintain an apartment when they are losing money every month?

Technically, this is explaining how rent control doesn't work. Why rent control doesn't work is "rent is controlled for price increases, but nothing else (including taxes!) is".

Policies should be judged on their actual results, not their posited intentions.

For the people saying that there must be a solution because rent costs are rising too fast, You don't know it, but you're actually wrestling against It was the ending of the gold standard that caused this. Rent control is a political distraction.

Strong agree on the supply side effects, but the full picture is messier than this 🤔. Rent control genuinely helped tenants stay put, especially minorities, verified by Stanford and MIT research. The real damage? Landlords just converted buildings to condos or left units empty, so the Monkey in subsidized housing wins while every other Monkey pays more 😬. The Gorilla always finds the exit door.

You can find a graph like this in every economics textbook in the world. It’s not a controversial subject

@Thorn_of_Gold

But Caleb Hammer has openly admitted he shouldn't be taken seriously when it comes to financial devices and that his show is an act? And hes been caught frauding his veiwers and subs How can y'all even use him as a credible reference when he's admitted to being a con man?

I think the missing part here is that the fact that landlords sit on properties and dont maintain them means the laws didn't go far enough. The goal is to force the landlords to sell so that there is available housing again.

This is something that needs to be repeated more often. It is both logical and moral to reject something that is supposed to help, but has a proven track record of causing harm instead.

Don’t bury the lead, rent control causes all the “new” renters to pay more, way more.

This is not new information, literally part I of basic economics by Thomas Sowell

We have evidence going back to at least the French Revolution showing the government arbitrarily setting prices doesn't work.

When we became a nation of scarcity instead of a nation of production and abundance, we lost a lot of benefits.

“It sounds really good and really moral” if you have a child’s understanding a the world. A young and simple child.

Just basic common sense and a little analysis should tell people that rent control doesn't work and never can.

They repealed it in Argentina recently and rent prices dropped significantly if I recall right.

Permitting is in the hands of racketeers. Permitting is not the issue affected by rent control, unless it's achieved by bribing those holding the permit, and no landlord will seek a rent-controlled unit. Landlords being forced to support a non-profitable business, and finding ways out so there's no maintenance at all is the issue. Racketeers offering favors attained by force are attractive to many short-term thinkers. Then they wonder why their building went to hell and stamp their feet. Fort Apache: South Bronx is the legacy of rent control.

lol the problem is the greedy owners: if they would have maintained the properties correctly… If they weren’t greedy and paid too much for these properties then… If our system didn’t feed this shit… Then they wouldn’t be in this situation. Bad investments.

How is it not clear it’s none of the Gov’s business what two private parties contract between them? Everything the Gov touches will turn to shit.