Written by Matthew Evans
California is facing a massive problem, a crisis in fact, that’s impacting the lives of countless people throughout the state. The lack of available housing in recent years has plagued developers, homeowners, and renters alike.
While the problem persists and only continues to get worse, there doesn’t seem to be a solution on the table. California legislators and government officials have turned their backs to the crisis, which is only becoming more pervasive.
Governor Gavin Newsom is perhaps the most prominent California politician who hasn’t done nearly enough to alleviate the crisis. His inconsistency when it comes to laying the groundwork and finding a bipartisan solution is holding back the expansion of housing in the state and further inflating the cost of housing.
The “solution” he has forwarded is riddled with inefficiency and shortsightedness. He has proposed a rent control strategy, which would regulate the price owners can charge for rent.
On paper, rent control may seem like a good idea, but in reality, it only exacerbates housing costs. The main problem with rent control is that it discourages the expansion and building of housing, which has played a major role in the housing crisis to begin with.
The more control the government has over rent pricing and regulation, the less beneficial it is for individuals and corporations to invest in new properties. Rent control disincentivizes homeowners from renting out their property, leading to less available housing, not more.
Recent polling found that 81 percent of economists view rent control as bad policy with costs that far outweigh any potential benefits. Anyone who has spent time with economists knows just how hard it is to get them to agree on anything, so the consensus on this issue is certainly noteworthy.
Governor Newsom and his Democratic allies are fighting for solutions that only add to the severity of the existing problem. Rather than pushing for overbearing government bureaucracy, control, and regulation, Democrats should allow individuals and corporations to work together to create more housing availability.
