Paywall removed: https://archive.is/MbQYG
Oh my God oh my God if the landlords have to sell, that would be… Check notes… That would be really good for people who want to buy houses.
But worse for those looking for a rental.
Rent control is a bandaid on a real problem that makes things worse long term. What California needs is build more, which means end the NIMBY and unfreeze property taxes so those seating on underutilized land are forced to develop it or sell.
Would property taxes actually do much? They’re so little even in high property-tax states that I think you’d need to do a lot more than that to FORCE rich people to utilize their other properties. High taxes would potentially push more costs on renters. Maybe we should just outlaw having more than 1 or 2 homes… including for real estate companies and banks :)
I keep wondering how to make the law do that. Making a company is like $100, that’s nothing compared to the house price. They would just have shell companies all over each owning a single location. 123 Fake St., LLC; 124 Fake St., LLC; etc.
High taxes would potentially push more costs on renters.
Potentially, but I think here not so much. Competition drives prices down. In a perfectly competitive market, prices are pretty much equal to the cost of production. In that case, any tax would be completely passed on to the customer. But you can’t produce land at a certain location. My guess is that rents are largely determined by willingness to pay.
I don’t think you need to add any taxes. If the area is attractive enough to warrant a higher density redevelopment, just unlock it and it will get done.
I mean, if you are a developer and you know for certain there’s a lot of interest in a certain area and you know for certain that you could buy that big single family lot and make a 3-5 story building instead with 10-20 apartments, you’d be crazy not to offer double the market rate to get it and develop it as fast as possible.
Just need to change the law to allow redevelopment of single family areas into medium density.
SIKE! sold houses are only bought by corporate holding companies, now you’ve lost even more rights!
In France there is a law that forces you to sell to your tenant if he has the highest bid
This happened a lot during the Great Depression. But then I believe the owners found a way to withdraw the auctioned property if the minimum bid didn’t suit them. The French law might bring back the Penny Auction by saying, “You put it up for bid - a sale has to go through.”
Idk, something like 12% of all metro Atlanta area homes are leased out by about 3 rental property companies. That’s a huge amount.