2 Matching Annotations
- Feb 2020
-
cdn.inst-fs-iad-prod.inscloudgate.net cdn.inst-fs-iad-prod.inscloudgate.net
-
Adam Smith pointed out that the “rent of houses” can be divided into the “building rent,” the rent actually necessary to operate and maintain the building, and the “ground rent,” which reflects demand for a desirable location.
Rent is going to be more expensive if the property is located in a high quality area with a large demand for rental units. The increased demand will directly result in higher rent prices.
-
In the economics literature, it is said that rent control results in “reduced mobility” and that this causes an “inefficient allocation” of rental units.
In New York city, some landlords have to keep apartments vacant due to a lack of funding to properly repair them. This is due to heavy taxes and regulations from the city. This has also made it more difficult to build additional affordable housing. https://nypost.com/2020/02/13/the-push-for-universal-rent-control-will-devastate-new-yorks-housing-stock/
-