Have any of you liberals read anything about this? I assume/hope it’s illegal?
Price Controlss
- Thread starter snarlcakes
- Start date
Have any of you liberals read anything about this? I assume/hope it’s illegal?
Cap them at 5% of what? Only allow 5% annual rental growth? Basically rent control the entire country?
I am not sure it is a good idea, but it has happened before under Nixon:
Economic Stabilization Act of 1970 - Wikipedia
lol….that looks like a group of people who would think it’s a good idea 🤦🏼. Young and dumb.
Note the two white guys in the top right who are the only ones actually working.
I mean...5% annual growth isn't an absolute killer...if that's what they mean. There's Fannie and Freddie multifamily programs out there right now offering lower spreads for agreed upon rent limitations...but those are usually limiting rents to "percentage of AMI" type programs.I am not sure it is a good idea, but it has happened before under Nixon:
Economic Stabilization Act of 1970 - Wikipedia
en.wikipedia.org
I am not sure it is a good idea, but it has happened before under Nixon:
Economic Stabilization Act of 1970 - Wikipedia
If you know what ensued from Nixon's price controls, you'd be quite sure it isn't a good idea.
But here were are again with yet another idea that is probably good politically but bad substantively. Silly season, getting sillier.
That is part of what worries me. The other is that in parts of the country there is just a huge issue with supply. I suspect there is gouging in some parts. A one-size solution isn't that helpful. We have underbuilt housing since 2008, Obama/Trump/Biden have done nothing to fix that.
Yes, there are housing supply shortages in some areas of the country. It's been well documented, commented upon, analyzed, etc.
I don't see any reason to look to the federal government to address it -- except in cases where federal regulations are standing in the way of development. Other than that, it's a local/state issue. The obstacles vary from place to place. So, as you say, a one-size solution just won't help alleviate it.
Rent controls surely wouldn't help matters, either. But I'd guess that a lot of people think they would.
From the Wapo article....
The plan is also likely to prove controversial among economists, including many Democrats. Experts on both sides of the aisle tend to argue that government limits on rent discourage new development by making it less lucrative. Housing is so expensive in America in large part because there simply aren’t enough homes, with economists estimating a shortage of between 1.5 to 5 million units. With construction and labor costs already high, some fear that developers could respond to new restrictions by reducing new construction.
“Rent control has been about as disgraced as any economic policy in the tool kit. The idea we’d be reviving and expanding it will ultimately make our housing supply problems worse, not better,” said Jason Furman, who served as a top economist in the Obama administration and is now a professor at Harvard.
The plan is also likely to prove controversial among economists, including many Democrats. Experts on both sides of the aisle tend to argue that government limits on rent discourage new development by making it less lucrative. Housing is so expensive in America in large part because there simply aren’t enough homes, with economists estimating a shortage of between 1.5 to 5 million units. With construction and labor costs already high, some fear that developers could respond to new restrictions by reducing new construction.
“Rent control has been about as disgraced as any economic policy in the tool kit. The idea we’d be reviving and expanding it will ultimately make our housing supply problems worse, not better,” said Jason Furman, who served as a top economist in the Obama administration and is now a professor at Harvard.
When you’re a Democrat and have a leftist economist like Furman telling you it’s a bad idea, it’s a really bad idea
This reeks of desperation. Those internal polling numbers must be really bad.
Politicians don't give a shit about what's good or bad. They give a shit about being elected and maintaining power. What do they care if their policies make things worse. That just means that the great unwashed need them even more.
From one of my morning briefings...
Biden Proposes 5% Cap on Rent Hikes for Corporate Landlords
Biden Proposes 5% Cap on Rent Hikes for Corporate LandlordsPresident Joe Biden plans to introduce a proposal today to cap annual rent increases at 5% for
www.credaily.com
From one of my morning briefings. I like how you say that. @BradStevens this is good languageFrom one of my morning briefings...
Biden Proposes 5% Cap on Rent Hikes for Corporate Landlords
Biden Proposes 5% Cap on Rent Hikes for Corporate LandlordsPresident Joe Biden plans to introduce a proposal today to cap annual rent increases at 5% for
I feel that more Mobile homes is a good option, especially for families starting out. I know they don't build wealth, but ya gotta start somewhere. I did!
Oh yeah lol. And during school it’s on the class dojo under Mr. But yeah Matt probably needs to be lumped in with jdb and twenty now.
The weekly call past couple years hasn't been great, that's for sure. Woof. Commercial Estate Finance could get dicey here shortly.
That said, headed to the Hamptons for the annual Summer boondoggle tomorrow, so we're not dead....yet. 😄 😐
That’s f#cking stupid and will only make the issue worse long term. This is another reason why Bitcoin is going to suck capital out of Real Estate. Could you imagine having 10 million in capital in RE, inflation pops to 6%, and you can only raise rents 5%? Oh yeah, and your buddy had 10 million in Bitcoin, did nothing, and it went up 50% that year. Liberals are the gift that keeps on giving.From one of my morning briefings...
Biden Proposes 5% Cap on Rent Hikes for Corporate Landlords
Biden Proposes 5% Cap on Rent Hikes for Corporate LandlordsPresident Joe Biden plans to introduce a proposal today to cap annual rent increases at 5% for
(Replying to Mark..edited)
It could, for sure...especially if operated as a multi-unit complex and not just individual rentals.
The NMHC and NAA hate it, but if it's structured as a "positive reinforcement" opt-in program, instead of a "negative reinforcement" program like his Covid shot threats, it could be decent.
It could, for sure...especially if operated as a multi-unit complex and not just individual rentals.
The NMHC and NAA hate it, but if it's structured as a "positive reinforcement" opt-in program, instead of a "negative reinforcement" program like his Covid shot threats, it could be decent.
Yes...as a "threat" it sucks.
Maybe offer full tax abatement for anyone who opts in voluntarily. That could work....kinda like an inverted HAP contract program.
Work for how long? It doesn’t fix the underlying issue and will eventually exacerbate the problem.
Like I said, as a voluntary program that you opt into, could make some bottom line sense for Class C workforce operators...especially if combo'd with some asset quality requirements.
Basically, owners would opt in (limiting potential rent growth), but the tax abatement would be worth it. They'd have to meet min asset quality requirements to mitigate the slumlord risk
Carrot instead of a stick.
Gotcha. Wouldn’t it just end up being a government subsidy for not so good businesses? Sure some renters get lower prices, but it wouldn’t lower prices for other renters. It would most likely drive up costs on other renters not in the program. Assuming that happened, then what, expand it to include more renters?
I’ll also add after thing about it for a few minutes. Making it a carrot means the most likely people opting in would be doing it because they had to. Whether they were running bad businesses or it’s a dying area or whatever. Strong businesses wouldn’t touch it. It seems like it would be a misallocation of capital and put more stress on profitable businesses. Plug one leak and 2 more pop up.
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Damn dude. Your company ever need quality legal representation from a seasoned litigator who knows how to rock a flat bill, hit me up.
Dark Brandon just upped the ante on rent control in a speech to the NAACP.
To hell with 5% rate increase caps. Now he's going to limit rent increases to....$55. And it got a helluva round of applause, too. That's a great deal. I might sell my house and just rent from now on.
To hell with 5% rate increase caps. Now he's going to limit rent increases to....$55. And it got a helluva round of applause, too. That's a great deal. I might sell my house and just rent from now on.
Joe’s handlers haven’t changed their colors. 2020 free cheese and wealth redistribution is the program of Dems gain control
I was kidding, but it's a problem even here. This place is privately owned by a family trust, and unless they've used their equity as a cash cow the property was paid for long ago. It's been slowly spiraling downhill for the last ten years ever since they fired the on site manager who had run it extremely well for twenty years or more. They've invested nothing in the property and as vacancies have risen they've ramped up lot rents to make up the difference. I had a long, civil conversation with the head of the property management company that is supposed to be running this place for the family, and he wholeheartedly agreed that there was a lot or work to be done and money needed to be spent. There's been no sign that that's going to happen. I looked him in the eye and asked him if the family was taking all the gravy off the top and not leaving him with the resources necessary to keep the property maintained and attractive. He wouldn't say yes, but he wouldn't say no, either.
We need to find a buyer to come in and do rehab via our Bridge program, then roll it into a Fannie/Freddie deal down the line. If you hear of anyone sniffing around to buy, ping me.
Given every new property in town is student (even if it's "market" technically), those manufactured housing complexes are a good option for working class housing...especially if decently maintained.
It definitely needs new ownership willing to invest into the property and not expect or demand an immediate return. There was a time when it was full, it was well maintained, and the renters kept their places up as well. Not the case any longer.
The storm very well may have queered any hope for improvements. The tree removal costs are going to be substantial.
