Rents have reached record highs.
But have no fear, renters! In the Minnesota cities of St. Paul and Minneapolis, progressives persuaded people to vote for rent control.
That’ll punish those greedy landlords!
Except, profits are what persuade builders to build things. When profits are high, other builders build. That’s what creates more housing and, eventually, lower rents.
Put limits on prices — and those greedy landlords find other places to build.
Whenever rent control is imposed, the supply of rental housing declines. Lots of studies show that.
But the activists don’t want to hear it.
“We don’t need more studies! We don’t need to collect more data! We need action now!” says Claire Bergren of Home to Stay, Minneapolis, in my new video.
St. Paul’s rent control is uniquely strict. Most cities exempt new construction; not St. Paul. They imposed it on future apartments.
“This is such a step backwards,” says Salim Furth, economist at the Mercatus Center. “The market is going to shrink, and quality is going to fall.”
After all, if you are a builder, “Why would you enter a market where it seems like the government is actively trying to hurt you?” asks Furth.
St. Paul developers can simply move just a few blocks over to