I was recently involved in a discussion related to real estate and rising rents. A friend proposed this policy: "We should limit the extent to which the city can expand, and we should have rent caps so that the prices don't go up." I responded: "That means that purchase prices will go up dramatically, if the influx of new citizens doesn't stop." She said: "Yes, but that will be temporary - the prices will stabilize at some point, they cannot grow forever."
Rising rents and appropriate responses
Rising rents and appropriate responses
Rising rents and appropriate responses
I was recently involved in a discussion related to real estate and rising rents. A friend proposed this policy: "We should limit the extent to which the city can expand, and we should have rent caps so that the prices don't go up." I responded: "That means that purchase prices will go up dramatically, if the influx of new citizens doesn't stop." She said: "Yes, but that will be temporary - the prices will stabilize at some point, they cannot grow forever."