Tom Sasse, Public policy correspondent at The Economist, dives into the struggles of 'Generation Rent'. He explores why millions are burdened by high rents and inadequate housing policies. Sasse critiques the unintended consequences of rent control, particularly using Sweden as a case study. The conversation touches on the complex issues surrounding TikTok’s ownership and U.S. security concerns. Lastly, he discusses how contemporary female artists are reinvigorating the album format, contrasting it with the previous dominance of singles.
Rent control presents challenges due to potential inefficiencies and housing allocation issues.
Balancing rent control with promoting new housing supply is crucial for addressing affordability crises.
Deep dives
Generation Rent: The Rise of Private Renting
The podcast delves into the significant increase in private renting, with one-fifth of the population now renting privately, up from a tenth in the early 2000s. This rise has resulted in about six million more renters, with over half of UK renters being over 35 now. The difficulties faced by millennials in entering the housing market due to factors like job scarcity, rapid inflation in house prices, and tighter mortgage rules after the financial crash are highlighted.
Rent Control Debate: Challenges and Controversies
The episode discusses the global debate around rent control as a proposed solution to rising unaffordability in the rental sector. While rent control may seem politically popular to provide cheaper rents, economists historically view it as a problematic policy that can lead to inefficiencies. Examples from cities like Stockholm, with strict rent control regulations leading to housing allocation issues, underline the challenges of implementing rent control effectively.
Planning Solutions for Housing Affordability
The podcast explores alternative solutions to address housing affordability, emphasizing the importance of balancing rent control policies with promoting a supply of new housing. Examples from Auckland, New Zealand, highlight the success of laws that upzoned land for denser housing, leading to significant increases in housing stock and helping to mitigate rent increases. The discussion underscores the complexity of addressing the ongoing affordability crisis for renters worldwide.
Across the rich world millions spend more than a third of their disposable income on rent. We ask why policymakers have such terrible ideas on easing the pressure. America’s bid to crimp TikTok has raised a flurry of issues far graver than social-media scrolling (9:53). And why pop stars are (again) embracing the album over the single (15:46).