Jake and Gino Multifamily Investing Entrepreneurs

Rent Control: Myths, Facts, and the Real Impact on Affordable Housing | Jake & Gino Podcast

Nov 4, 2024

Jay Parsons, a rental housing economist and Head of Investment Strategy at Madera Residential, dives into the contentious debate surrounding rent control. He explains how such policies often harm the very tenants they intend to protect. The discussion touches on the critical link between housing supply and rental prices, the complexities of affordable housing in high-cost areas, and the role of investor strategies in today's market. Jay also shares insights on the emerging built-to-rent sector and the importance of a data-driven approach in multifamily investing.

47:55

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Episode guests

Jay Parsons

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Economists widely agree that rent control policies often exacerbate housing shortages and harm the middle class instead of helping them.

Increasing the overall housing supply is a more effective solution to the affordable housing crisis than imposing rent control measures.

Despite current challenges, the multifamily housing market remains attractive to investors, emphasizing the importance of strategic, long-term investment approaches.

Deep dives

The Ineffectiveness of Rent Control

The discussion highlights widespread skepticism among economists regarding rent control, citing a survey of 46 academic economists across various states. The overwhelming consensus is that rent control does not positively impact the middle class, contrary to political narratives from the White House. Renowned economist Ed Glaeser has been noted for emphasizing the detrimental effects of rent control on urban areas, exemplifying the general academic agreement on this issue. Proponents of rent control often attempt to propose variations, but fundamentally, these proposals lead to similar negative outcomes, adversely affecting the very individuals they aim to protect.

Intro

4min

Housing Supply and Rental Dynamics

8min

Navigating the Challenges of Affordable Housing Development

4min

Navigating the Multifamily Real Estate Landscape

16min

Navigating Market Realities in Multifamily Investing

3min

Avoiding Common Mistakes in Multifamily Investing

3min

Exploring the Potential of Built-to-Rent Housing

4min

Transforming Housing Markets

9min

Enhancing Real Estate Insights through Objective Analysis

3min

Jay Parsons dissects the complex dynamics of rent control policies and reveals why they may actually hurt the very people they aim to protect. From the supply-and-demand equation to strategies for creating affordable housing solutions, this conversation sheds light on the factors shaping today’s rental market. If you’re an investor, landlord, or simply curious about the rental housing market, this episode is packed with insights on navigating today’s economic challenges.

Chapters:

00:00 - Introduction
01:03 - The Rent Control Debate: Economists’ Perspectives
03:34 - Building More vs. Rent Control
11:13 - Affordable Housing in High-Cost Areas
17:35 - Foreclosures and Debt Distress in Multifamily Real Estate
28:08 - Risks in Tertiary Markets and Asset Quality
30:52 - Advice for LPs and Investors in Today’s Market
35:31 - Build-to-Rent: Jay’s Thoughts on This Growing Sector
45:02 - Supply Forecast: When Will More Deals Hit the Market?

Follow Jay Parsons on LinkedIn for more thought-provoking data and analysis on the housing market.

We're here to help create multifamily entrepreneurs... Here's how: Brand New? Start Here: https://jakeandgino.mykajabi.com/free-wheelbarrowprofits Want To Get Into Multifamily Real Estate Or Scale Your Current Portfolio Faster? Apply to join our PREMIER MULTIFAMILY INVESTING COMMUNITY & MENTORSHIP PROGRAM. (*Note: Our community is not for beginner investors) 👉https://jakeandgino.com/apply About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company. They control over $250M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino on the social media platform you are most active on: https://jakeandgino.com/link-tree/

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Jake and Gino Multifamily Investing Entrepreneurs

Rent Control: Myths, Facts, and the Real Impact on Affordable Housing | Jake & Gino Podcast

Episode guests