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this post was submitted on 09 Jun 2024
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One of the issues is if material costs to maintain the property increase steeper than this cap.
Though the solution is pretty practical -- cap it at inflation.
Don't really care honestly, since the prices they're charging now are nowhere near their operating costs as it is.
They can take a hit to their profit. Or sell an "unprofitable" property.
This is the truth. You need to create conditions that make renting unprofitable and unsustainable, and all of a sudden property prices will begin to fall as landlords sell. This happened in London after WW2, when renting was over-regulated and most of the residents ended up owning their own apartments as landlords sold off property. After deregulation, the reverse trend began again.
What happened to the number of new apartments being created?
And this is somehow not a problem for salary increases?