- Feb 2020
-
cdn.inst-fs-iad-prod.inscloudgate.net cdn.inst-fs-iad-prod.inscloudgate.net
-
This analysis of land rent also applies to rent control, which can be used to limit increases in land rent without reducing the rent below what is actually necessary to operate and maintain the building.
Rent control makes it so that landlords do not lose money, and can afford to keep running their business (and maintain their building) whilst still making a profit. This stabilizes the market and protects landlords.
-
estimates that two-thirds of San Francisco’s excessive housing cost is the result of its geography, since 75% of the area within 50 miles of its downtown is under water or on steep hills
The supply and demand factor ALONG with geographic factors create this expensive rent cost. Because of San Francisco's geography (on a peninsula) there are limitations for building housing- especially in terms of horizontal land use- therefor, one of the ways this has been thought to be battled is by building taller buildings. However, because of the restrictive zoning laws, this option is not possible. In many parts of San Fransisco, buildings cannot be taller than forty feet. The options for building housing is quite limited due to these geographic factors and zoning laws, and in turn, there is a limited supply and a very high demand, which drives up the prices.
(to read more about zoning and San Francisco's housing problem, see website url) https://www.businessinsider.com/why-housing-is-so-expensive-in-san-francisco-2014-4
-