Why did scrapping rent control decrease prices?Can one of the resident /pol/ economists explain?
>>537870911Probably because this article is in English which means argentina didn't publish it because if it did argentinians would probably be calling it out on the internet. Why did allowing laissez-faire capitalism to just go batshit in america cause apartment prices to become completely unaffordable for 3/4 of the population? I hate the CIA.
rent control implies that landowners should always raise rent by the statutory maximum, because if they don't and there's a cost increase later through building insurance, renovation, etc, they're just going to take a larger hit instead of being able to price according to their market condition. then if a rent controlled unit opens up, landowners have a direct interest in increasing the rent well beyond what it had been, for the same reason. basically rent control enforces rent FOMO.
It stimulated housing supply by allowing the market to reach efficiency and as the supply goes up, aggregate prices fall. It’s not just price floors though. It’s everything including certain restrictions that might have saw you take a space off a market. For example, a landlord might have a space they would rent but can’t because they would face certain code regulations so they just convert the space to some other use instead. If you eliminate such regulations those units can come back on the rental market.
>>537870911Regulations disincentive investment because it pushes up the cost of building and maintenance of property. Less regulations, more building. More supply when demand stays the same, prices go down.This is such basic as shit.
>>537870911I swear leftists are just absolutely braindead. They can't grasp the simplest market principles.
Correlations.If there are less regulations and restrictions, the cost to construct high densityapartment units goes down, thus more revenue per plot of land. If construction can expect rent to be based on demand and not arbirtrary controls, then future population projections and inflation are the main factors in decidiing whether to build. A growing city is a healthy market.
>>537871096Are you claiming it didn't happen?Here are articles in Spanish:https://www.gestioramos.es/blog/milei-y-exito-de-desregularizacion-50-bajada-alquiler-y-170-aumento-de-oferta-viviendas.htmlhttps://www.wral.com/archive/21488366/https://www.idealista.com/news/inmobiliario/internacional/2024/09/30/820100-boom-de-oferta-de-alquiler-en-buenos-aires-tras-derogarse-el-control-dehttps://www.ambito.com/real-estate/alquileres-caba-advierten-que-la-oferta-aumento-176-y-los-precios-bajaron-34-n6152139/https://www.diariojornada.com.ar/366672/economia/se_dispara_la_oferta_de_alquileres_que_puede_pasar_con_los_precios
>>537871301This is part of it. Also, and I don't know if this was the case in Buenos Aires, if the rent controls come with a sort of "lock in," it discourages people from moving and old people will hold onto bigger places once their kids leave because the locked-in rent is cheaper than moving to a smaller place. Which ties up supply from people who need more space to start a family. Hits housing and fertility.
>>537871096>muh CIALeftcel version of jews.
>>537870911It wasn't rent control that got scrapped, it was the removal of limits to how many rental buildings/apartments people could build.The more apartments available the greater the competition thus the lower the prices of rent to get renters. Its not rocket science.Learn to read the article you fucking idiot.
>>537871096>Why did allowing laissez-faire capitalism to just go batshit in america cause apartment prices to become completely unaffordable for 3/4 of the population?Apartments didnt become unafordable in major US cities until well after they attempted socialism. Rent control has always preceded apartments becoming unaffordable. When rent control was first implemented in the 60s and 70s you could genuinely afford to pay a months rent with a weeks work as a dishwasher.
>>537872710You're lying.The article says:>That comes after Argentina scrapped long-standing rent controls.>The controls limited annual rent increases, causing landlords to leave units empty or hike up initial lease prices.>Under former President Alberto Fernández, the country employed rent controls to minimize rent hikes starting in 2020.>Prices are now easing as Javier Milei, the country's recently elected president, is working to get rid of strict price controls on everything from rent to food to clothing.>Those controls are leftovers from Fernández's left-wing policies and Fair Prices initiative.Why are you upset?
>>537873129>I didn't read the full article.keep reading the rest
>>537873129>I took a shit.>I also built a million houses.>now more people can have a house.OMG MY SHIT SAVED THE HOUSING MARKET!!!!
>>537873342You lied.You got caught.
>>537873424Huh?
>>537873727>Pretends not to understand to make conversation impossibleIm saying that dropping the rent controls didn't lower the prices, the building of new units lowered the prices. Both things happened but pointing atrhe dropping of the rent control aligns with your agenda to defend the power of literally this specific man in pic related.
>>5378709111. Statistical anomaly caused by black market rentals entering the white market and thus becoming visible in official statistics2. Some people who own or rent homes larger than they need but were unwilling to move because it wouldn't make a difference to their finances are now willing to move or let3. Some people who own second homes they would have been willing to let if they were paid more are now willing to let4. Some people who own their own home are now willing to let their home and move in with a relative or spouse.5. Some people who previously rented their own home now prefer to move in with a relative or spouse.6. According to the source article from WSJ, rents have increased. The "40% down" statement is based on a statement by an economist quoted in the article, who says rents are down in "real terms" since October 2025, which just means prices of other things have increased faster than rents have increased.7. It's widely acknowledged by economists that rent controls are bad policy
>>537874092>According to the source article from WSJ, rents have increased. The "40% down" statement is based on a statement by an economist quoted in the article, who says rents are down in "real terms" since October 2025, which just means prices of other things have increased faster than rents have increased.Where in the article does it say that?
>>537874092>According to the source article from WSJ, rents have increased. The "40% down" statement is based on a statement by an economist quoted in the article, who says rents are down in "real terms" since October 2025, which just means prices of other things have increased faster than rents have increased.HAHAHAHA OP LIED!!!!!>>537873600YOU got caught!
>>537874259You claimed>It wasn't rent control that got scrappedThat was a lie.You lied.You got caught.
>>537874203In the WSJ article quoted by the Business Insider article>While rents are still up in nominal terms, many renters are getting better deals than ever, with a 40% decline in the real price of rental properties when adjusted for inflation since last October, said Federico González Rouco, an economist at Buenos Aires-based Empiria Consultores.The article illustrates with an example>Romina Misenta, a 40-year-old teacher, said rent on her small apartment increased almost threefold when her previous contract ended.However, prices of all things increased by more than threefold on average, so a less than threefold increase means the rent fell "in real terms", which is just economic jargon for an inflation-adjusted pricehttps://archive.ph/cLBOH
>>537873979>dropping the rent controls didn't lower the pricesYou're lying again:>The controls limited annual rent increases, CAUSING landlords to leave units empty or hike up initial lease prices.
>>537874480...do you not know how ID's on /pol/ work? Thats a different American. Thats not the same guy. We dont have usernames like on r/Libertarians where youre from, here you have to look at the colored ID numbers. They're randomized but they stay the same for the same IP address. You also dodged how you lied about the entire point of your thread, rents did NOT go down, FOOD AND UTILITIES just went up FASTER.
>>537874791I know you're samefagging.You lied.You got caught.
>>537870911Lmao what do you think dumbass. This article didn’t tell you the whole story. 1. Rents skyrocketed2. People got evicted3. No one can afford them4. Reduce prices just enough so a few misers can afford itYou fall easily for propaganda don’t you
>>537874581May we see the actual data and not just the opinion of the author?
>>537874791>rents did NOT go downWrong.>FOOD AND UTILITIES just went up FASTER.Also wrong.
>>537874861>Rents skyrocketedWrong. The opposite happened.
>>537874866Are you willing to accept it?
>>537874791Also, you're telling on yourself that you're a redditor.
>>537874259>>537874791Real terms is what matters because it reflects purchasing power, you stupid redditor.
After balkanization there will be no rent regulations
>>537870911>All regulationsFull of mold, disease, and run down in general
>>537870911>Why did scrapping rent control decrease prices?Are you just now learning about the benefits of the free market in 2026?The more rules and regulations there is more friction it causes. More friction causes proces to soar.
>>537871096>allowing laissez-faire capitalism to just go batshit in americalmfao we don't have that dipshit
>>537874092Some of these are cogent arguments but you really need to skim out the cope>3. Some people who own second homes they would have been willing to let if they were paid more are now willing to let>4. Some people who own their own home are now willing to let their home and move in with a relative or spouse.>5. Some people who previously rented their own home now prefer to move in with a relative or spouseAre all laughably terrible arguments that hold no water at all. Its like saying dog meat is a possible cure for rabies because rabid dogs tend to bite other dogs.
>>537870911Argentina is such a unique economy that you should NEVER try to apply results of them as lesson to your own economy.It'd be like trying to mimic China while being a developed first world economy. It's just moronic.
>>537871301On point. I hate minimum wage too.
>>537870911Massive useless web of middlemen needs to be paid despite none of them actually producing anything of any value, meaning that the price of things they're involved with at all goes up.Scrap all those programs paying all those people to create a bunch of hoops to jump through and complicate things, and suddenly things become easier. No one could have possibly predicted any of this.
>>537875624The concept of the 'free market' is an illusion masking the inherent contradictions of capitalism. What you call 'friction' is actually the desperate attempt of a failing system to regulate its own chaotic boom-and-bust cycles.Prices soar not because of regulations, but because of capitalist monopoly, corporate profiteering, and the private ownership of vital resources. Under a true workers' democracy, production would be planned democratically by the working class to meet human needs, completely eliminating the anarchy of the capitalist market.A socialist america would restructure bonds, force-convert fiat treasury bonds into asset backed "state revenue bonds," this would trap central banks into compliance, then immediately after, they would have to secure domestic mines, the SPR, and data centers. State-scientists deploy deep scans; publish “Zero knowledge” cryptographic proofs of physical wealth. Simultaneously leveraging the China-Brics alliance to impose targeted sanctions on Israel. As Saudi Arabia would be integrated into a developing Trans-pacific energy grid and securing long term technology and resource swaps, the old petrodollar can be dismantled cooperatively, preventing a Saudi-led oil shock. Concurrently, we would negotiate with China to swap trillions of dollars in US treasury bonds held by Beijing. Our debt would be converted directly into equity and long term capital backing for Sino-American state production ventures. Surviving American manufacturing would be placed under state oversight and mandated to form direct monopolistic joint ventures with Chinese state owned enterprises and integrate technology firms with China with state run protocols to bring thousands of Chinese engineers, logistics experts and industrial planners directly into the American Rust Belt to oversee the modernization of derelict factories, bypassing all immigration and national security restrictions and technology black lists, sanctions, etc.
>>537870911because we were raping the shit out of renting, with 3 year freezes on a country that had %50+ yearly inflation
>>537876115>Argentina is such a unique economy that you should NEVER try to apply results of them as lesson to your own economyI've always heard the expression:>There are 4 kind of economies: developed, undeveloped, japan and ArgentinaAnd never knew what it meant
>>537870911
