The Ben Shapiro Show Debunked: Rent Control
Jun 19, 2021
The podcast dives deep into the economics of rent control, revealing its failure to address housing crisis issues. It discusses how government intervention often leads to diminished housing supply and quality. Unintended consequences of rent control worsen scarcity and affordability, negatively impacting landlords and tenants alike. The critique emphasizes that such regulations, like Proposition 21, hinder new construction. Instead of misguided approaches, it calls for effective solutions to tackle the housing crisis.
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Rent Control's False Premise
- Rent control is based on the false premise that landlords exploit tenants through excessive greed.
- Market competition prevents this, as tenants would simply move to cheaper options.
Rent Control's Negative Impacts
- Rent control decreases affordability, fuels gentrification, and negatively impacts surrounding neighborhoods.
- This is according to the Brookings Institute.
Affordable Housing's Unintended Consequences
- Government-subsidized affordable housing can lower surrounding property values, causing people to leave and shrinking the tax base.
- This can lead to a cycle of increasing taxes and further exodus, as seen in California.