Are rent controls really effective or not? Does it help the tenants at all?
According to a previous report by zillow.com, "Most housing experts agreed that rent control measures,are not effective at all." The market trends when it comes to rent cost is always changing. The rising rents all across the nation are triggering rent controls to gain grip, but according to a past report by Zillow, "It does not seem like it among economists, real estate analysts and other housing experts." With the imposition of rent controls, deficiencies in rental housing may develop. According to seattlemet.com, "Rent control won't work to achieve its stated purpose, even the lowering of overall housing prices."
The Zillow Home Price Expectations Survey (ZHPE) gathered more than 63 percent of experts that participated in the survey. According to a survey done by Zillow, "Rent control ordinances are government intrusions into the marketplace that, however well-intentioned, always create more problems than they solve." It is not every day that one sector group agrees on one thing, but it seems in this survey, they do.
Other surveys done by Zillow showed that, "The next-largest group which has 33 percent, believes that rent control might be effective in a crisis but should be a last resort." Even if rent cost is lowered, it is not an assurance at all and to prove the point, a previous article of Zillow reported that, "While rents are less affordable than ever, monthly mortgage payments are still within reach of people making the median income in most places."
In circumstances where rent portfolio remains low, rent control can even the economic divide between landlords and renters. However, despite the rent control policies, tenants and landlords alike are the ones that are affected the most. According to a previous report by Zillow, "New York have had rent control for decades, and whatever the drawbacks, there is little political will to withdraw it, and people love their rent-controlled apartments, even passing them down through generations."
