Rent Control: It’s a Mirage, Hurts Low-Income Families, Means Higher Costs for Renters By – the California Association of Realtors®

The following is an excerpt from a position paper by C.A.R.’s Center for California Real Estate.  It details the consequences of rent control policies, which have been used in certain California jurisdictions to attempt to increase access to rental housing.  The complete position paper can be downloaded at http://centerforcaliforniarealestate.org/publications/CCRE_Rent_Control_report.pdf.

How Rent Control Drives Out Affordable Housing – Part V By – William Tucker

Shadow-Market Housing In large metropolises, a housing shortage can severely damage the city’s economy.  Experience shows that when such cities adopt rent control, they usually try to avoid outright housing shortages by leaving segments of the market unregulated.  Unsatisfied demand is diverted into this unregulated sector.  Because of the shadow-market effect people in this sector…