But prospective landlords tend not to build new units (or maintain old ones) when they don't feel they are getting a fair deal. It leads directly to the situation they have in San Francisco, where property owners only rent to family, coalesce many smaller units in to few larger ones and sometimes withdraw their units from the market entirely.
Landlords are investing capital and their own labor in their properties. If the expected return on that investment is less than what they could get from government bonds and a 9-5 job, don't plan on a big expansion in housing stock.
A very good point, but I think it has to go both ways. Both renters and landlords need to feel like they're getting a good deal. Kill rent control without increasing supply or enacting other protections, and suddenly the fairness scale tips over to the landlords and completely away from many (most?) residents.
Definitely agree that the current situation is broken, but I was only suggesting that "it wouldn't be fair to landlords" is a bit too simple a consideration to make things right.
Well, it doesn't have to be.
But prospective landlords tend not to build new units (or maintain old ones) when they don't feel they are getting a fair deal. It leads directly to the situation they have in San Francisco, where property owners only rent to family, coalesce many smaller units in to few larger ones and sometimes withdraw their units from the market entirely.
Landlords are investing capital and their own labor in their properties. If the expected return on that investment is less than what they could get from government bonds and a 9-5 job, don't plan on a big expansion in housing stock.