"Anyone who things rent control is an easy issue to solve, is not thinking clearly. It truly is a vexing problem. What is the solution? Beats me. Smarter folks than I will have to figure this one out. As for both the renters and many of the landlords in the Twin Cities - I feel for them."
I really feel for some of the folks who are renting in either of the Twin Cities. Mostly Minneapolis, as I am more familiar, as I have a loved one who rents there. Plus, the number of people who rent in Minneapolis is very high - over half of the residents rent. In addition, the average price of a one bedroom apartment in Minneapolis this year is very high - $1,444. That is, if you can find a rental in Minneapolis. In addition, it price of a rental depends what area of Minneapolis you are renting in. Some areas have luxury rentals and are very expensive. Some areas have average rentals. And some areas are are way below average.
How about the landlords? Are they guilty of squeezing folks of limited income, to get every cent they can for rent? Are there huge corporations, who are buying up rental properties to own and operate, with no regard for the people who rent them? Or are they simply people who buy rental properties, to use as extra income.
If rent control is enforced, some good things, and some bad things, could happen. It would be good (at least for a while) for renters who are living on the edge of not making it, month after month. It would be bad for the landlords who have growing expenses (especially this year), and not being able to pass those on to their renters. It would be real bad for the renters, should the landlord realize the rental property was no longer viable to use for income, and the landlord just lets it go. Then the renter would have to try and find another rental property in the shrinking, and very expensive, rental market in Minneapolis.
Other large cities have tried rent control with mixed success. Some have had problems with the lower end rentals, where people of limited means rent. Some buildings have deteriorated to such an extent, the city shuts them down. Other buildings are sadly in need of repair, but are still operating as a rental. In the high end rentals, where people of more wealth rent, it is not as large of a problem. In some areas, no problem at all.
St. Paul recently voted on rent control. It passed. The rents are limited to increase a maximum of 3% a year. Sounds good, unless the costs to maintain the rentals go up 8% a year. Developers who are planning new rental units have contacted the city of St. Paul and told them they are putting new rental projects "on hold". On hold? Why? Rent control will make them a bad investment. In a city where rental units are already scarce, losing future rental units is a huge loss. So much so, Mayor Carter is already rethinking the boundaries of the newly passed rent control.
Anyone who things rent control is an easy issue to solve, is not thinking clearly. It truly is a vexing problem. What is the solution? Beats me. Smarter folks than I will have to figure this one out. As for both the renters and many of the landlords in the Twin Cities - I feel for them. Both are stuck between the "devil and the deep blue sea". Not a good place to be indeed,
It doesn't take a genius to understand that supply and demand is an immutable law of economics, and any government attempt to change it is doomed. The only question is HOW that government absurdity will fail. Governments get the idea, somehow, that they can repeal or override the laws of chemistry (like mandating less CO2 from the burning of coal), physics, economics and human nature. Too bad they do not suffer from their own foolishness.
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