12-11-2021, 01:12 PM
(12-10-2021, 12:08 PM)danbrotherston Wrote: I don't think that's the point, it's easy for rentals to be price regulated, the vast majority of rentals are regulated in some way.
This is an example of owned properties also being price regulated. I don't know of any other examples like this.
“regulated in some way”
I’m not saying that all regulation causes trouble, including price regulation. I’m saying attempting to change prices directly causes them to change in a different way. In Ontario rent control applies only to continuing tenancies. As a result, in the long term rents never get seriously out of step with market rents and the worst problems are avoided.
However, the issues around “renovictions” and similar issues show what happens in situations where the tenants want long-term rentals which therefore do have the ability to end up far below market rent. In the student market, the current rent control system doesn’t have much effect, because most students leave after a small number of years at most, allowing their apartments to be re-rented at market. In the long-term occupancy market however you sometimes have these issues arising.
I understand that there are cities that are being destroyed by rent control. In some places, rents are frozen at levels established decades ago. As a result, there simply isn’t money available to maintain the properties, to the point that some buildings have collapsed and whole place looks incredibly dilapidated.