Silicon valley looks to failed system of rent controls

NY Times:

In Silicon Valley Suburbs, Calls to Limit Soaring Rents

Bay Area towns that tech made rich are considering rent control, an urban tactic, to save a middle class squeezed by years of punishing rent increases.
The best way to limit the cost of rents is to increase the supply of housing.  Rent control does the opposite because it takes away the incentive for adding to the housing stock.  It remains one of the reasons rents are so high in New York City.  Remove the onerous restrictions on building and land use and see the supply increase and rents decrease.

The reasons rent and housing in general are so much less in Texas is there are fewer restrictions on building.  Houston has been a fast growing city but it is now a renters market.  Home purchases are so much more reasonable.  One of the reasons so many companies are leaving California for Texas is that their workers can find affordable housing and in most cases replace the modest houses in which they live in California with mansions.  All that and they don't have to pay state income taxes.

Rent controls would be a mistake.


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