WALTER BLOCK ON RENT CONTROL
Rent control was introduced in WWI.
Returned in WWII. Great need to have people on the coasts, where ships were being built, supply of housing and demand of housing. Demand increased because of military building. Rents rose. Supply and demand issue, not greedy landlords. But local cities imposed rent control.
Demand is greater than supply.
Rent control came about because rents were frozen at a certain point. It was at equilibrium. When you have inflation, both the supply and demand curves rise. You're left with a dotted line. The solid lines vanish because of inflation. Fixity of rents. Can't raise your rents.
First generation of rent controls, there were no exceptions. But after WWII, money gravitated toward other things because there was profit to be made. But not on housing because of rent control. More rent control a city had, the
NY City didn't get rid of rent control.
Second generation rent control had exceptions. If you built a new building, the rent control commission would tell you how much you can charge.
without rent control, the incentive that a landlord had was to serve the customers.
Vacancy decontrol gives landlord power to get tenants to leave. Under rent control, the last thing you want to do is satisfy the customer.
3rd Generation of Rent control came in the 70s.
You could build on 70% of your land. Commissioners said that was too much and said that you can build only on 40% and gave the owner 1 year. Required to knock buildings down. Takes 2 to 3 to 4 years to build an apartment house. Zoning variants causes . .
No one builds under the 40% rule.
Landlords are promising 6 months' free rent.
A year
Then rent stabilization came in. Couldn't control, so they didn't control. Stabilization was a way of getting around the builders. Builders versus the zoning commission.
Government enters and provides public housing. You have to get on a waiting list. If your house burned down, you get to the head of the waiting list. Fire insurance paid out huge sums because there was incentive to burn rent control buildings. Unbelievable.
If you didn't pay your rent . . . . You go to rent an apartment and stop paying rent, the landlord takes him to court. Takes 6 months to
Can't kick people out during Christmas.
Stop paying rent in the summer and couldn't collect rent, so the landlords had incentive to burn the building down.
Next to bombing, rent control was the best way to destroy buildings.
Rothbard on rent control.
Block on rent control. And here.
Rent control was introduced in WWI.
Returned in WWII. Great need to have people on the coasts, where ships were being built, supply of housing and demand of housing. Demand increased because of military building. Rents rose. Supply and demand issue, not greedy landlords. But local cities imposed rent control.
Demand is greater than supply.
Rent control came about because rents were frozen at a certain point. It was at equilibrium. When you have inflation, both the supply and demand curves rise. You're left with a dotted line. The solid lines vanish because of inflation. Fixity of rents. Can't raise your rents.
First generation of rent controls, there were no exceptions. But after WWII, money gravitated toward other things because there was profit to be made. But not on housing because of rent control. More rent control a city had, the
NY City didn't get rid of rent control.
Second generation rent control had exceptions. If you built a new building, the rent control commission would tell you how much you can charge.
without rent control, the incentive that a landlord had was to serve the customers.
Vacancy decontrol gives landlord power to get tenants to leave. Under rent control, the last thing you want to do is satisfy the customer.
3rd Generation of Rent control came in the 70s.
You could build on 70% of your land. Commissioners said that was too much and said that you can build only on 40% and gave the owner 1 year. Required to knock buildings down. Takes 2 to 3 to 4 years to build an apartment house. Zoning variants causes . .
No one builds under the 40% rule.
Landlords are promising 6 months' free rent.
A year
Then rent stabilization came in. Couldn't control, so they didn't control. Stabilization was a way of getting around the builders. Builders versus the zoning commission.
Government enters and provides public housing. You have to get on a waiting list. If your house burned down, you get to the head of the waiting list. Fire insurance paid out huge sums because there was incentive to burn rent control buildings. Unbelievable.
If you didn't pay your rent . . . . You go to rent an apartment and stop paying rent, the landlord takes him to court. Takes 6 months to
Can't kick people out during Christmas.
Stop paying rent in the summer and couldn't collect rent, so the landlords had incentive to burn the building down.
Next to bombing, rent control was the best way to destroy buildings.
Rothbard on rent control.
Block on rent control. And here.
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