Dear GSSCC Members:
According to Brookings Report – What does economic evidence tell us about the effects of rent control?, while rent control appears to help current tenants in the short run, in the long run it decreases affordability elsewhere; can fuel gentrification if rental properties are converted to owner-occupied condos and higher-end rentals are constructed; and creates negative spillovers on the surrounding neighborhood. Rent controlled properties create substantial negative externalities on the nearby housing market by reduced maintenance on the controlled properties, lowering the amenity value of these neighborhoods and making them less desirable places to live. In short, the policy imposes costs on local property owners, but only a fraction of that cost is transferred to renters in rent-controlled apartments.
Less distortion may result by offering this subsidy in the form of a government subsidy or tax credit to offset increases above a certain floor. This would remove landlords’ incentives to decrease the housing supply and could provide households with the insurance they desire. A point of future research would be to design an optimal social insurance program to insure renters against large rent increases.
Do not delay, take action TODAY! Urge the Council to reject Rent Control legislation!
Visit the Chamber Action Alert page for information on how to make your voice heard.
