“Small landlords will sell to live-in owners further reducing supply. ”
… and the demand.
Johnson1
2 years ago
I worked for a company that had similar caps on prices.
The solution was to raise the list price but then give an discount that put you at competitive market prices. Lest say the market supports a price of 1000 for your service. You list your service at $1300 and give a %30 discount. So if you are capped at 5% increase but want to raise prices to $1100 you just remove the 10% of the discount.
So maybe landlords will start out with a deal where rent would be $1000 / month. You put your rent at $1100 a month but you give one month free.
KyleW
2 years ago
What can we do besides mock them for being fools? Maybe that’s the best thing we can do for them to help them learn.
In St Paul? Ha! Bought a restaurant there years ago, city wanted me to pay an architect to draw out the floor plan. Only thing i was changing was the name.
I almost put it up for sale.
Historically one of the most corrupt cities around.
Carl_R
2 years ago
Great article, but I’m confused about one thing, that being how you exclude new construction. If the property has never been rented before, there is no rent price. How can you limit the increase to 3% when you don’t have a base rent? I would presume that new construction would be able to set their initial rent at anything they want, and then increase it by 3% a year what wherever they start? If so, they could start by placing it above the market price by 10-15%, and then let the market catch up. It may fill a bit slower, but since it’s new, they will get some tenants.
RonJ
2 years ago
“The new ordinance doesn’t go into effect until May 2022. Nevertheless,
several real estate companies with large projects in the works have
already announced that they’re pulling their permit applications.”
Newton discovered some laws of economics. One of them says that for every action, there is an equal and opposite reaction.
Until the idiots behind this sort of nonsense learn the more basic one, about simple supply and demand; they’ll forever be stuck, like the ape clan inhabiting Jackson, Wyoming; wondering what to do with something as intractable as the city’s “housing problem,” while looking out the window at a quadrillion empty acres of land……… It seems, it must he hard to be retarded..
wmjack50
2 years ago
When democracy allows the confiscation of freedoms of one group to the benefit of another group those who vote will be modified or democracy will end
Supply and demand. Specifically the supply part, which is the important one.
Even something as fundamental as supply and demand, is by now beyond the grasp of the illiterate rabble cluttering up all positions of authority in this dump.
Eddie_T
2 years ago
OT…bought a little TAN for more renewables exposure. I don’t love the fundamentals of most of the solar companies….they’re almost all over-priced imho, but the technicals are fairly compelling. People want to buy solar.
Eddie_T
2 years ago
Minneapolis and St. Paul are failed cities that are being run by people with no real skin in the game of commerce. It can only get worse. I wouldn’t invest a nickel there.
Irondoor
2 years ago
This is a good thing. It accelerates the decline of society and hastens the trip to the bottom. Only then can those who happen to survive start to rebuild a country on the basis of hard work, discipline and personal responsibility. Hopefully by then the Federal government and the Federal Reserve will be so discredited and blamed for the funding and promotion of wokeness that progress toward freedom can begin again.
LCP
2 years ago
C’est la vie when those who know nothing are put in charge.
Dean
2 years ago
“there are not solutions, only trade offs” The Great Dr. Sowell
I own a house in Saint Paul. I am trying to figure if this debacle is a long term benefit or disadvantage? surely with supply/ demand my house will be worth more in coming years. Yet the rentals around me will be falling under disrepair; could this attract lesser quality renters or just freeze in place the ones that are here?
Curious-Cat
2 years ago
Of course the measure passed. Everyone wants something for nothing if they have no skin in the game. Obviously those who voted for the measure have no understanding of the history of previous such efforts, or even a fundamental understanding of economics. My question is if those with skin in the game did not embark on a social media campaign explaining how this would all work out, why didn’t they?
Saint Paul has many progressive colleges and a well funded Commie Public Radio institution (MPR, praise home companion). Where we live in St. Paul the ratio of BLM signs to American Flags is like 100:1. I was surprised the vote was only 52% for!
Based in part on UM consumer sentiment dropping. Out today with Nov preliminary and well below expectation.
“Consumer sentiment fell in early November to its lowest level in a decade due to an escalating inflation rate and the growing belief among consumers that no effective policies have yet been developed to reduce the damage from surging inflation.”
Government should always ban everyone else from having any of the things I have. That way, I can extract usury and blowjobs for renting them my breadcrumbs.
And, of course, they should be banned fro having guns as well. Only the cops preventing them from having anything, should have those. That way, things are more peaceful for me.
TheCaptain
2 years ago
Liberals try to mandate prosperity for their stupid followers. Money does not flow to where it is not being treated well. The result is shortages. Why do the liberals never learn?
Liberals never learn because for their entire pre-adult lives they have experienced a wide range of government benefits. Except for the very rich they have gone to schools paid for by the government, taught by people paid for by the government and many unionized. Teachers see this as the way the world ought to be. We need primary and secondary education to focus on economics and how to resist marketing designed to control their lives.
It’s easier to vote for money than work for money. This is why our Founders required owning land to vote, you had to have skin in the game to have a voice.
Karlmarx
2 years ago
NYC instituted rent control as a temporary measure to provide housing for thousands of workers who came to the city to build ships and stuff during WWII. It still endures and all pre-rent control properties have either converted to owner owned cooperative apartments or have fallen into extreme disrepair
Growing up, my mom was a slumlord in Washington DC. She tried making money by renting, but it was impossible. A white landlord in Washington DC while Marion Barry was running things didn’t have any legal rights. Police ignored her and the courts wouldn’t even look at her cases. She had to convert everything to condos and sell them.
Tony Bennett
2 years ago
October year over year rent increase nationally.
Apartmentlist … +15.8%
Yardi … +13.7%
RealPage … +13.1%
… and, yet, FOMC continues with pedal to metal Monetary Policy. Insanity.
They have no choice. It’s a debt Ponzi. If you stop feeding a Ponzi, it collapses very rapidly and everyone knows it. They are about to slam their foot through the floorboards. Have you ever seen pigs fly? You’re about to.
several real estate companies with large projects in the works have
already announced that they’re pulling their permit applications.”
Whats the root cause for wanting rent control. Lets address that.