A special Clarity from guest: Murray Sabrin, PhD, author of From Immigrant to Public Intellectual: An American Story.
The Biden administration is considering imposing nationwide rent control because rents have been rising faster than incomes over the past couple of years. Rising rents is another inevitable consequence of the Federal Reserve's super easy money policies that were implemented to stimulate the economy to deal with the Covid lockdowns in 2020.
Rent control has destroyed housing units in every city it was tried--New York City has been the poster child for "temporary" controls that were introduced in 1943. Once price controls are introduced they are hard to remove, even after they cause widespread economic harm. The solutions to high rents are straightforward .
More supply by removing barriers to construction of moderately priced apartments and ending the Fed's manipulation of interest rates. In time, supply and demand will be in balance and rents would come down especially in communities where the building restrictions have been the most draconian.
In my December 2021 Fortune essay I alluded to price controls coming to America because of accelerating inflation. Read Below!
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