1.15.2016

Economics is hard

San Diego Reader:
“Rent control is normally used in locations that experience rental rates much higher than market rate,” [Imperial Beach city manager Andy] Hall added. “That is not to say the City Council may not try to look at some method of rent control, it just may be very challenging until rents rise above market value which is something we need to carefully monitor.”

1 comment:

Anonymous said...

If he means that rents increase beyond the underlying cap rate based on comparable transactions, then maybe, just maybe, he could be making sense because that would suggest collusion, price fixing, etc.

That said, I think he's just a moron.

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