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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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.
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.
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