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If blight (or relative blight) is a pre-requisite for a communities gentrification, does implementing rent controls set up a communities for future gentrification? A bunch of economists will jump up and down saying that rent controls are inefficient , leading to reduced capital expenditures, a large % of building fall into disrepair, perceived disrepair lead to less investment in amenities, continued perception leads to blight, leading to reduced capital expenditures in housing, etc. (negative feedback loop) Given that buildings have a shelf life, eventually the value of the land & old building vs land & new building will dramatically jump. Enough building go through the cycle and the whole communities land value dramatically jumps, leading to gentrification. Can rent controls lead to undervalued housing being ripe for developers to buy (decades after original rent controls) and re develop in a way that shakes the rent controls and allows the valuation to move towards (even past) the market equilibrium?
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Feb 25, 2015 02:02
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| # ¿ May 15, 2024 12:46 |
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