The Effects of Rent Control: A Summary of the Literature

[@geosids7815]

The chainsaw Miley the Argentinian president abolished the rent controls and in short term he has 40% price decrease should we suggest that decreases will remain in the long term ? i believe Argentina will not see sharp decreases in next years to come as housing supply is inelastic in the long term for a poor country and the demand will not be inelastic as the real wages will not increase that much for an economy of mid to low tier.

[@danielschoch9604]

That's not it. All these results are based on capitalist models of housing and the failed attempts to "regulate" them. Even in the sparsely populated USA there is lack of housing even where the market is complete "free" for "investors". The average supply elasticity in the US is only -0.8. So, even under unlimited exploitation, there is lack of house construction until you have governmental non-profit housing projects. In contrast to private landlords with the usual I-don't-care-for-tenants profit attitude, their apartments are well maintained, updated for energy savings, frequently refurbished, and in good state. Red tape and high land prices are the reason for slow governmental building progress. A luxury-refurbished large apartment which could house a complete family, but is given to the rich guy as he is the only remaining able to pay for it - that is what I would call a misallocation. Non-profit housing companies distribute houses according to need, not income. Driving Grandma out of her apartment of 40 years because it is too large is an idea only a neoliberal psychopath can put forward. After all the rent she paid, the apartment is supposed to be hers. And only TENANT OWNERSHIP gives an incentive to relocate to a smaller and cheaper apartment. Everything else is capitalist oppression. Moral: Capitalism fails and socialism is widely successful in housing. When you see homeless people on the street in a country with low population density, the reason is Capitalism. In low and middle-income countries with large populations you see people living in high-rises. Most of them are not for profit. Rent control is not the solution, home ownership, rent-to-buy and non-profit housing is. You can't "regulate" Capitalism. You can only abandon it.