How Rent Control Hurts Renters
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- Опубліковано 14 чер 2022
- Everywhere it's tried, rent control harms the people it's meant to help. Yet foolish politicians continue to implement it.
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Rent for housing is up 11%.
To “fix” that, St. Paul, Minnesota just imposed uniquely strict rent control.
It applies to existing housing, and new construction.
The city is repeating mistakes many have made in the past.
Rent control once destroyed much of my town, New York.
Because landlords couldn’t make money, some set fire to their own buildings to collect insurance.
The late economist Walter Williams once told me, "Short of aerial bombardment, the best way to destroy a city is through rent controls.”
But the politicians don’t understand that.
In my new video, I confront a socialist city councilwoman from St. Paul’s sister city Minneapolis. She’s eager to control rents.
Serious respect for the woman who volunteered to be eviscerated by John Stossel during that interview🙏
I'm sure she went to college for 6-8 years to have no clue about REAL LIFE
Yup. Good for her.
Its turned into a position where there are no real debates between the two parties anymore. Just talk among each other thinking how smart they are.
When John pointed out that new building permits were up in Minneapolis as much as they were down in St. Paul, you can almost see the smoke coming out of her ears.
@@NohSpinZone Yup, but because she's a young socialist there's 0% chance of her admitting she might be wrong
Totally agree. Too many of these politicians wouldn’t dare to go on a show that doesn’t completely agree with them. We need more of this.
"Asking a socialist where prices come from is like asking a 6-year old where babies come from."
Thomas Sowell, paraphrased
Well, with this current alphabet community power on public school, pretty sure a lot of them already know where babies come from.
Watch "What is a woman" by Matt Walsh.
@@TheSiprianusWhat does Matt Walsh have to do with the Left's universal economic illiteracy?
@@TheSiprianus amazing documentary
And because of prices and profits we have so many of our parts/products outsourced to other countries instead of the US because of costs.
imagine a sowell stossel ticket, that would be a potential 16 years of common sense & government shrinkage
All I know is that rent is too damn high and that needs to change.
"rent is too damn high" - As a landlord, I agree. But that is only because new construction has slowed down to a crawl (NYC). In addition, many landlords are deliberately leaving their rent stabilized apartments vacant once the tenant leaves. A risk/cost analysis makes it obvious to the landlord that if he/she rents the vacant stabilized apartment, he/she will actually loose money. So now there is a smaller selection of available apartments. A vast majority of them are not rent controlled. Those available apartments set price due to demand and are not handicapped by stabilized laws. That's why the rent is so damn high. My friend rented an apartment for $2200 per month in 2021. Now her rent is $3000 and there is nothing she can do.
A lot of that is because of the government, because of property taxes. The landlord has to pay for maintenance, and taxes. And in order to do that they have to charge enough rent. And governments tend to raise the value of properties regularly and raise taxes on those properties.
If you want a simplistic answer why rent is too high, it's government regulation, especially of land use.
exactly right. maintaining a property is very very expensive and when the government dictates how much rent you can charge, a landlord will take every possible shortcut to save money.@@theagreen204
@@avipharmd7646what difference does it make it they build new apartments if EVERYTHING they build is "luxury" and ends up being over priced? if Larry the renter cant afford the 1200$ a month rent for his 1 BDRM 600 sq ft apartment, how is having 100 new apartments buildings ALL priced at that same 1200$ a month rent gonna help?? it doesnt
I will give that lady the credit for giving the honest silence instead of blushing out some nonsense words to cover it up.
"We don't need more studies!"
Good, just use centuries of history and what happens _every time_ without spending more on studies.
Modern science is the new religion, believers will twist data as long as it fits their needs. Their motto should be trust the science but not that science
As long as the existing mindset agrees with them, they'll refuse to acknowledge any more studies.
I say WE DON'T NEED MORE STUDIES ABOUT TOBACCO, ASBESTOS, LEAD BASED PAINT, MEDICINAL LEACHES, SHOCK THERAPY, LOBOTOMIES, NUCLEAR BASED COSMETICS, I SAY THEY ARE ALL SAFE WITH THESE SELECT STUDIES I FOUND.
Can you give an example in which new supply fixed the issues these people are concerned about, without an underlying reduction in the demand that causes these issue. It's very hard to separate the the effects of new housing (or lack thereof) from higher levels of demand. Additionally, the type of housing that poorer people live in is normally torn down during the building permit process to make way for less dense, more luxurious housing. I can also say, from what I've seen as an economics student, that finding the data that you need to actually determine the effects of any of these things is incredibly difficult.
"We are the partee of soince!"
This politician demonstrates the failure of our education system.
It demonstrates too many emotional females in politics... They don't care about facts and they won't stop until they get it and ruin everything men built...
I think she did pretty well. She successfully listed all of the places where socialism worked.
Bar trick from a wealthy family masquerading as a politician. Another installed puppet.
I think the root problem is the culture at large.
LOL
But it is NOT a failure, our controllers have exactly what they want.
Ignorant and stupid people are so easy to manipulate.
You know what else hurts the renter? Slumlords who just paint over everything and then charge 1500 a month for a studio apartment in the middle of the ghetto.
They wouldn't be able to charge that if people weren't paying it. Ultimately the renter sets the market as they determine the price they'll pay.
@@channell11Unfortunately people HAVE to pay it because the housing market is now unattainable, so people can't buy, thus, they are forced to rent and pay the outrageous prices. Housing is a necessity. It's not just something people "can not pay" if they don't want to. That's why rent control is even a topic.
maybe because it costs 1300 a month to maintain the apartment
Rent control CAUSES slums. Make renting apartments almost unaffordable and corners get cut.
@@jomr4249America is big enough that every American could own a 30m2 plot of land. There's plenty out there. You only have to pay exorbitant rents if you want to live in a big city.
Companies should NOT own single family homes.
The moment she paused and knew she was wrong was a glorious moment.
Sad thing is she knows she's wrong but won't change her worldview.
@@beatrixkills1 well too be fair, you cant really change any person's mind with a conversation after they've hit 20 years, after a couple days or weeks sure, but that just isnt how political concepts are conceived. they pull very deep strings and it takes a lot of time to rewire them.
@@beatrixkills1 for example: she still has liberal parents, and liberal friends and goes to a liberal school with liberal teachers. a lot of people mentally survive on communist doctrine
These people don't care about anyone but themselves. Getting reelected is the only thing they care about.
No commie or socialist will survive communism. They will eventually start eating each other.
People hate when you try to explain the complexities of an issue. Too many people just want a view they can easily chant.
Complex thoughts don't fit into 140 characters :shrug:
It's like Nixon one said "Conservative ideas are SOUND. Liberal ideas merely sound good."
Yeah. Like blindly believing is supply side economics.
The view of "I want this, so it should just be given to me." They hide behind all sorts of dialogue that makes their though process sound more substantiative, but at the end of the day, that's what it boils down to.
@@stephaniegormley9982 Nixon and modern conservatives are an awful example of sound ideas. They just have different bad ideas than progressives do.
One of the best examples of cognitive dissonance playing out on a human being's face in real time.
"I'm doing a just fine job of representing my community."
What exactly is the other option? Let Landlord's continue to give themselves 20% raises every year?
It's always amusing to me how the 'market' argument falls apart when you factor in the monopoly stranglehold Wallstreet firms have on housing...
We tried the profit>people approach for half a century and the economics never got around to trickling down.
@@FloppyCheeks.you do realize that the reason why Wall Street firms are able to get so powerful to buy up all these houses is because govt bailed them out during the 2008 recession and they have been receiving corporate welfare subsidies due to lobbying? Not to mention the fed setting interest rates at near zero for the past decade that allowed for quantitative easing and cheap credit which allowed Wall Street to borrow billions of dollars (at a very low interest rate) to buy up all these houses driving the prices artificially high? These are all a product of the central bank and government intervening into the economy, not free markets. In a true free market where interest rates are determined by the market and not a central bank, and where government is not allowed to prop up failing companies, Wall Street would never have this much power over the economy.
Her answer to "where has socialism ever worked?" was "I'm doing a just fine job of representing my community" That is the response of someone who hasn't given any thought to whether what they propose would actually help her community.
Nah, that's projection and does not make any sense. Logic and reasoning are not on a timer.
Those pauses were priceless. Haha.
Better than screaming at him like a typical leftie, so I'll give her that.
Uuuuhhhh....
It's brutal. She like other liberals like AOC are basically Tik Tok politicians that do things that sound compassionate on paper but end up making things twice as bad.
For real. She got destroyed by a simple question. OOF
@@OverlyCriticalAnime totally need to make an npc meme of this
The poor rent control advocate just got schooled. The silence was the sound of a few new facts getting sucked into her ideological vacuum and having no place to land. "Uuuuhhhhh, I'm just going to stick with ignorance, John. Works for me. Got me elected."
she got owned by john
and that smirk on her face as she gave that weak ass bullshit answer after having to think about it with her last remaining brain cells just gives you the big picture of what the real problem in this country is. people like this KNOWING they can get away with it because of how little attention the public gives this.
She didn't learn anything. She doubled down on her nonsense saying she is representing her constituents well. Stupid people vote for stupid candidates.
even in soviet and now in china, the government mass built apartment complexes to have no homeless people and to mass migrate millions of workers into cities.
if you don't build anything, of course no problem will be fixed....
0.11% of rental homes are rent-controlled, and 10% of homes are vacant, lack of supply isn't the determining factor.
Same in commercial, up to 30% of storefronts in affluent parts of NYC continue to be vacant, its not lack of supply, nobody can afford to operate at those levels.
Supplying more housing doesn't make rent go down. I've never seen, "rent go down". These big companies don't need $1500 a month for a one bedroom to be able to afford materials. This is the same reason there are laws against monopoly. This is greed.
I've never known this to happen either... because I doubt that it DOES! Letting "the market"* determine prices has become an unmitigated disaster for renters in recent years.
[*Whatever "the market" means?...]
As a renter, I know first-hand what it's like to get run out of town (or state) because of rent gouging. It's a complete disconnect nowadays between what MOST people earn and what rents cost. And yes, landlords know full well that wages and rents have to be correlated. That's why in Florida they require a take-home paycheck that's equivalent to 2-1/2 or even 3 times the rent. Just curious... How does somebody just out of college land this type of job? How about seniors (like myself) on fixed incomes?
this is exactly what people were saying in the 1940s, as a result many public housing projects were built in order to combat that, like Pruitt-Igoe, Cabrini-Green, and Robert-Taylor homes. These houses were specifically built to house lower income people and rents were set and maintained at extremely affordable prices. And guess what happened after that? These projects became crime ridden ghettos. The local government was not able to raise enough revenue through rent or taxes to keep up with the cost of repair and maintenance of these homes, coupled with the fact that many residents had enough of the crime and those with barely enough money left these homes to live in safer neighborhoods while most decided to live on the streets since according to them being homeless was safer than living in those homes. This decrease in residents further reduced rent revenue. Criminal gangs continued to ravage these homes, increasing repair costs. In the end, the state of these homes were in such bad shape and disrepair that the government had to demolish them. Just goes to show that all these "solutions" for combatting high rent prices end up making the problem worse.
WOW, why not rent out then?
Exactly. It's not the mom and pop landlords that are driving the rent crisis, it's the multi-billion dollar property managers that ONLY care about maximizing profit margins. This is why huge investment firms should be limited on how many properties they can own, in order to maintain a healthy level of competition in the rental market. This basic concept of competition should be applied to every industry.
@morgan14366 The real question is WHY is there such a lack of (affordable) housing? Truth is, every major city in the USA has 1000s of empty units that sit empty because no one can afford to rent them, and the property managers are fine with leaving them empty because they are gouging their existing resident enough to compensate.
Also, I will never understand why so many 'regular people' (i.e. not rich) carry water for these multi-billion dollar corporate monsters that don't give a fck about you. The status quo damn sure isn't working for renters, so I'm all for sensible regulations to reign in these massive property managers...and you should be too.
Stossel just embarrassed her … love it!!!
"We don't need math or economics; We need solutions that make us feel and look good!'
A perfect example of public education!
The scariest part of that interview with the Minneapolis councilwoman was not that she was ignorant (and annoyingly rolled her eyes every time she was asked a hard question), but that she was unwilling, when confronted with facts, to acknowledge them since they didn't fit with her ideology.
Exactly like Obama when he was confronted in that debate when he was asked if he'd support cap gains tax hikes even if those hikes resulted in less tax revenue. The ideology is more important than the outcome.
Sure everyone knows this by this point, but that eye rolling thing is a red flag that someone is attempting to make something up, usually because they don't have an answer on the spot. Aka, lying.
Or in her case, buzzword salad.
At least she agreed to be interviewed by someone she knew wouldn't agree with her. That's more than 99% of politicians so good for her
Obama actually blames NIMBYs for preventing more housing being built btw
I am a law student from Israel, doing my seminar in rent control, seems that economic principles work everywhere on earth, just like gravity. Thank you for the amazing presentation.
Could you define it working in terms of housing?
Always felt alone and weirdo to even question anything “they “ tell you. Thank you for bringing realistic ideas and facts
Insane to watch a human actively and proudly chose an emotional position over a statistically proven and reality based option. Seeing her answer simple criticisms was like watching a child's mind reboot so they could ask for candy again.
Agreed. Same could be said about a LOT of policies, bills and laws... including our idiotic involvement in the war in Ukraine.
@@RetreatHell Its funny to me that Trump ends the Afghan war that Obama/Biden didn't... Biden manages to fudge the last part of the Afghan pull out, and then spends 40 billion in Ukraine knowing Russia is aware it's really the US they are at war with now.
Dems like wars.
exactly, well she is there to be the voice of her people, whether is right or wrong, what if her people said, we want a brothel on every floor, would she argue for that also
We choose "Truth" over facts
It never ceases to amaze me...
Democrats: "High rents are extortion!"
ALSO Democrats: "High taxes are good!"
Actually, a lot of American problems would be solved with Rent Control and Higher Taxes. Sorry to say John Stossel is objectively wrong on this one.
Majority of American wealth is created by the people, who bring goods, services, and innovation to the market. That relies on a populace that is healthy, wealthy, and wise. Instead, USA is poverty stricken as many goods are outsourced to overseas, many services are partially outsourced (or done by cheap labour), and innovation has plateaued. The corporations are rich, in fact, they have never been as rich today in history.
So the take-home message is that, the height of USA has been during the 1940s-1970s, with the steady decline beginning in the late 1970s. Falling off the gold-standard was the start which had a big effect, since now there is no-one to keep the government in-check/responsible from printing too much fiat. The other factor is that corporations have begun paying and bribing politicians to enact laws in their favour. Especially when it comes to subsidies and taxes. Essentially they have put the burden of tax on the middle-class. Historically, tax was a tool used by the kings and presidents to get big companies to put skin-in-the-game.
The current system has the consequences of filtering money created by the people, and sending it back up the channel. This gets concentrated to the few at the top, especially The Bankers. So you really need a massive taxation reform, that is levied against the top 5% of wealthy individuals. Then to use these funds to stimulate the economy. But not from top-down (trickle), nor from bottom-up (welfare). You do it by strengthening the middle-class, giving the people Equal Opportunity to rise up the social ranks. The best ways to go about this is through proper education, quality services, necessary infrastructure, and affordable healthcare.
Now, the other point is that USD is fiat (limitless) whereas Land/Property is limited. So you can "slow" things down, but you cannot stop it. The value of the dollar will travel towards zero, whilst land prices will travel towards infinity. The solution is actually rent control. You need low-rent prices so that you can burn off the bad businesses. There are many contractors, property developers, and landlords which unfairly profit from the burden of others. And they create pressure in the market, which perpetually increases prices (usually cyclically). If you remove the incentive for profits, the bad businesses leave. That's a great thing. It is a great thing for landlords as well, because it means the "leeches" who don't contribute to the economy and engage in rent-seeking-behaviour are also not able to function. Meanwhile, regular landlords are not affected. Besides majority of landlords don't make a meaningful profit since that money just gets siphoned back up to The Banker.
Remember, if you increase the quality of life for productive people, that is like planting a seed. That in-turn provides goods and services to the market, creates innovations, which all expands the economy. Right now on a superficial look, that is what it looks like is happening in the USA, but the truth is, the figures are distorted by the Corporations. As an analogy, if you had 99 poor people in a bar and Bill Gates walks in, suddenly the average person there is a multi-millionaire whereas the median person has not changed. For the past 40-years the Rulers (Politicians, Bankers, Corporations) have been neglecting the central socio-economical people, or actively taking funds from there, which leads to the erosion of the Middle Class. So how is it these corporations have been able to survive, or sustain, or even have record-growth then? It is because they have outsourced many tasks to other peoples in other nations, and they have kept the proceedings. We can see this with the rise of the Chinese and Indian economy (and to some extent: Mexican, Brasilian, Russian).
@@ekinteko That was a really long and frankly unconvincing case for rent control. How are "regular landlords" NOT affected by being unable to raise rent enough to keep up with inflation, and by the local government forbidding the market from functioning? Especially if the "majority of landlords don't make a meaningful profit" as it is? Yes fiat money is bad and the Fed should be abolished, but your argument about rent control makes no sense and doesn't logically follow from that point.
@@RMTP5 Alright, I'll try to keep in brief.
When you look at different cities around the world such as Toronto, Sydney, Hong Kong, London, Melbourne, Tokyo, etc etc. There is a clear pattern occurring.
The cost of house prices has increased significantly, more than wage increases and more than inflation. In fact, more than both combined. This effectively creates two class system: haves and have-nots.
Now that in itself is a big problem, but isn't a deal-breaker. However the housing bubble in those locations is caused by a speculative investment, and not treated as what it ought to be 'basic necessity'. So if you follow the history in those markets, you can see they are fuelled by the banking sector.
There's people struggling with huge downpayment just to get a mortgage. Then they realise they're paying huge sums in interest to the bank. And they accept this because of "tomorrow's fool" thinking. So that when the value goes up, that at least they would be rewarded for their investment. This is a shortsighted approach because it leaves the house-occupier out of the equation. How are they going to afford it? I don't know, that's their problem, is the general thinking I've discovered.
So in order to make this financially viable, when the house price increases, and the interest rate increases, it doesn't take very long for landlords to demand a higher rent. Essentially they pass the buck. And we see a shifting of money from the middle class, to landlords, to realtors, to bankers. It is a viscous cycle.
I can elaborate on more points later if you wish. And expand upon somethings that have not made sense to you.
But the gist is, John is absolutely wrong on this problem. And he knows it. He is using things that are unrelated to obfuscate the issue. The lady in the interview isn't the brightest tool in the chestdrawer, and perhaps shouldn't be in her position. However I am more interested in the ideas and solutions, rather than the person.
There have been small scale experiments with "socialist" regulations which have actually been very successful from: universal healthcare, rental control, and basic income. I personally don't care about communism, capitalism, or any other "label" people use. I care about the real-life tangible solutions. We should look at the world stage, and learn from the successes (and failures) of other nations, systems, and people's.
@@ekinteko so your argument is not that rent control is good, your argument is that rent control makes this worse, but what also makes it worse is corruption among the rich and politicians. So stossel isnt wrong. he could just also do a video on what else is damaging the housing market on top of rent control.
because as much as you would like to think rent control is a way to solve the problem youre talking about. its not, for all the reasons jon talks about, which you have not disproven a single thing he mentioned. youve only pointed to other issues. Rent control will never be a valid solution to the problem.
$1500 for a 1 bedroom should be damn near criminal. In 1992 you could get a 2 bedroom for $300. Our wages are in the dirt.
I'm in San Francisco and this is the EXACT problem !!
I own, so this is making my property more expensive - but its the same reason that rent is so expensive. Owners DONT WANT TO RENT because they have no control, there is less inventory, and thus the remaining rooms to rent - are WAY over priced. The hotels also shut down air-bnb , so now the hotels can raise their prices much higher.
People now, don't even use hotels in SF, but rent outside the city and take bart (the subway) into it !
@@SigFigNewton Rents fell around the end of the pandemic - because everyone left. And those who were smart enough to see this (because it rarely happens), returned and got a good deal. Rents since then, have remained high and still remained high.
News tries to give the impression that people are leaving San Francisco, but neglects to inform, that they have and are returning. Rent and housing control still remains the reason for (over-all) high rates.
(rent in the San Francisco metro area was up 9.5% at the end of 2022 from the previous year)
@@SigFigNewton I wish I were smart enough to sell at the beginning of 2020, but I didnt know there would be a pandemic :D
Real estate (solid assets) still remains the best investment against inflation. Parts of San Francisco devalued but real estate (even in a city) happens in bubbles. In my part of the city, the price remained fairly steady.
@@SigFigNewton How are those stocks doing at the moment ? ;)
@@SigFigNewton What recovery ? it hasnt gone down if you picked the right locations. I guess could say the same about stock, but almost everything is down in the stock. Keep buying thinking it will go up buddy...
This young lady doesn't actually care about lowering rent. If she wins then her fight is over and her base doesn't need her anymore.
Yep. Liberals have no interest in fixing the issues because then they wouldn't have anything to run on.
I think she actually does care...The problem is, on a surface level, rent control appears to be the most obvious solution. It's really no surprise when so many cling to what seems to be the obvious solution.
Unfortunately, things are not always what they seem.
@@RjeanUrah If she really cared she would educate herself and do more research. Her inability to answer very important questions in that interview only demonstrates her ignorance. To go out in public and scream with passion about something she doesn't understand makes her unfit for office.
@@wafflemon1858yes, true.
@@wafflemon1858 It's moreso a problem, and we've seen this nonstop, people are just incapable of thinking past first order consequences. No one thinks about the second or third order consequences. E.g. lockdowns will save grandma! Print money and hand it out to people. Without thinking that more people will likely die from global food crises, high energy prices, and poor will suffer more from inflation.
I live in Sweden where there is rent control. All of the larger cities have problem with not enough housing. Instead of letting the market decide the price a lot of the larger companies implement a queue system, since the demand is so high. If you want to get a standard apartment in a larger city you need at least 10-15 years in that queue to get a shot at an apartment.
Crazy. Is this true? That seems so insane. Having to wait a decade for a place to live doesn’t seem practical at all.
@@jb8408 It isn't. Sweden is still crawling out of the mess of several decades of poor financial planning and are hindered by idiots' emotions and a huge influx of non-useful migrants. It really is too bad. It's such a pretty place.
@@jb8408 there are apartments dedicated to students that are easier to get. You can only live in them while studying. The alternative to having a apartment is to rent from someone who can't use their apartment, it is only allowed for half a year to a year.
Another option is to buy a apartment in a condominium, which requires a down payment of 15%, which can be between $30-80k.
All of these restrictions leaves immigrants and young people outside of the housing market. A lot of them fall prey to illegal sublets with no security, poor conditions and overpriced.
however, there is no rent control in Finland, which is Sweden's neighboring country.
so even we, who have the same culture, and same politics (social democracy) have differing viewpoints on how to best help the homeless.
we think building more, even small apartment complexes that looks a bit soviet actually helps the homeless and keeps rents at a moderate level.
so even people with the same political beliefs and in the same geographical area are not a monolith that thinks the same.
( as a social democrat country, we also pay ~800+ euros per month, even if you choose not to do anything at all, for however long you want.
rest of your life, if you so choose to.
and healthcare, prescriptions for glasses, document expenses like getting a passport, insurances for the apartment, those sorts of things.
not many do, only a few percentages of society, but you can if you want.
nobody needs to be homeless in here. they can just sign a piece of paper for monthly money assistance at any point they choose. if someone is on the streets here, it's because they really really choose to. very few do. we have blistering winters with cold north winds and -30 Celsius temperatures, yet we don't have homeless being frozen outside in droves.
private rent lord owners here love it that government pays the rent. they see themselves as noble providers of housing for the poor. as long as the government keeps paying the rent, that is. )
@@Redmanticore I heard that in Finland a large part of the population is on housing allowance (bostadsbidrag.) Which kind of defeats the purpose of not having rent control.
I once lived in a place in Wisconsin (there was not a lack of rentals) where the landlord raised the rent 50 dollars per month until we agreed to move out. How is that fair to renters (who had never been late on a bill or rent due)?
@381 322 you're missing the point.
Well this person is trying to find the solution to rent being capped at a decent price, since you say more rental properties equals less rent. If rent control is not the answer, and this person says there are plenty of properties available yet rent still goes up monthly in this person's case. Then what is the answer. Forget the point or being right about rent control being an issue to building more properties. What's the solution? Unless you enjoy paying 3.5k for a shoebox??
Then move out!
Think about the alternative. Someone else who wants to live there and is willing to pay more rent isn't allowed to because of rent control laws.
Surely it's better for stuff to go to whoever's willing to pay the most, rather than whoever gets there first?
I stopped renting out my properties a long time ago because it was less costly to keep the home vacant. 2 years of having a tenant cost me more than the rent I collected. Then I had to pay taxes for the money I collected.
lol
I worked with a builder years ago (I'm sure he is long dead) who told me his accountant scolded him for keeping half his rental units vacant. He was renting them at a discount to tenants paying cash.
@@uncareid5557 You are better off keeping them vacant that way you can write it off as a loss. Its much more complicated to write off the loss when you are collecting rent money.
My landlord is very insistent that I pay rent in cash. And he is politically self described as "extreme left wing".
My father knew that 35 years ago.
Commercial property is a different story!
I was blown away by how loud those pauses were, they spoke volumes. I respect her greatly for agreeing to come on in the first place. I can only pray those moments of silence become moments of real self-reflection for her. Outstanding video, thank you Stossel.
To put her lack of intelligence in display was... wonderful.
She's used to a fawning press licking her Ugg boots.
We own a few rental properties and let me tell you...after homeowners insurance, property taxes, handyman expenses, pricey replacements like roof/hot water heater/AC unit, and lawn care, we aren't getting rich off of it. Whoever called it "passive income" was never a smalltime landlord.
The only period of time over which my parents made money on the rentals they owned (duplexes and a single-family house) were when the rentals were still new and after the construction loans were paid off. Dad built them all himself, so the loans were not large.
Once they hit an age where they needed regular maintenance, dad determined it was cheaper, factoring in his time, to sell them to the tenants and bail out. The family in the single house bought it, with a heavy discount for years of rent paid. And one side of each of the duplexes bought the whole duplex as the rent on the other side paid the mortgage for them, as long as they kept it occupied. Dad laid out a financial plan for each building that was extremely beneficial to both him and the tenants, hence at least 1 tenant in each building took the offer.
CONGRESS called it a "passive activity." That's the kind of nonsense you get when attorneys (instead of accountants) write tax laws.
That's terrible. On top of that, potential lawsuits at every corner.
Also my experience. Contractors are extremely expensive. Trying to work with people behind on rent is a nightmare at times as well. I hate asking people to move. Dealing with tenants behind on rent is easily the worst part of the job for me. There are definitely nasty landlords I am aware of but that doesn't mean a blanket policy is in order. I feel like if my local government would take the guys who are actual slum lords and fine them or put them in jail then there would less of a need for "rent control".
I know a man who has tenants who were recently hospitalized by sewer fumes because he refused to fix a sewage problem. He also charges hundreds more than we do. It blows my mind he isn't in jail for endangering his tenants.
@@johnbaker7322 And at the same time you get tenents that are just naive to how anything works. We had one who went on vacation in the dead of Wisconsin winter and shut off the heat to save money. Broken pipes everywhere and both toilets shattered from freezing. Another place had a pool and rather than maintain proper chemical balance the tenant pumped the 30,000 gallons of water into the yard and was going to refill it with the garden hose...except the liner tore away as soon as the water was gone. Dad filled the pool with sand after that and then sold the house :)
While it's true that more buildings lower rent, it still isn't nearly enough. That is why rent control is necessary.
Landlords know it's not costing that much repairs when they half fix .
The fact that she seems to have been genuinely considering what John was asking rather than immediately attacking his character out of partisan ideological possession gives me some hope for her eventually coming around to a more libertarian perspective. Unfortunately it won't be until after the damage is done.
Ignorance is no excuse.
Or it could be worse. She knows her ideas won't work and goes through with them anyways.
@@crabmannyjoe2 I doubt she would have bothered to even do the interview if that were the case. Why would you knowingly put yourself in a position to look like a fool unless you believe the nonsense you're espousing.
There's a reason leftists refuse to do interviews. Those are the malicious actors who KNOW they are being duplicitous.
She was not considering the question. She was dumbfounded and knew she was a fool. She had no reason like when a parent says "just because".
@@jeffstanley4593 You can't say that definitively. You can read whatever you like out of silence. That was the lesson of the Salem Witch Trials which directly informed the 5th Amendment of our Constitution. If silence is all you need to "prove" someone is thinking something or making a statement by omission, you'd make for an easy mark on a jury like when the prosecutors tried it multiple times throughout the Rittenhouse trial.
I will re-assert that I believe she was genuinely considering the question, but simply didn't have an answer because she's never given it any critical thought beyond feeling justified for "doing what's right."
@@GabeSweetMan Are you going to maintain that she did indeed know what to say but did not say it? Are you indicating that she thought John was wrong but was unable to express herself? Are you saying that perhaps she thought John was a fool and did not want to embarrass him? Are you saying that maybe she was going to make her own YT video and explain her reasons for promoting rent control then? Just what do you think? Tell us what you think she meant to convey by her silence and "deer caught in the headlights look". I mean, you are writing that she had thoughts but did not want to express them; right?
The primary thing all these politicians need to understand is that the real estate market, unlike the soda pop market, is a *delayed* one. I can pack my bag and move to another city tomorrow. However, getting a permit and constructing a new-build can take years. As long as we want our buildings to follow certain rules & regulations determining their location, size & safety, we must simply accept that it will take time responding to housing shortages.
There are agencies, companies that track the influx of people coming in and out of the area. Thus having a good view of what the state, city will be. However, if the city fails to make the timely adjustments they will end up same as what we see today. Remember, the best of intentions often do not help.
and ironically, most of that delay comes from the government as well. They continue to make it even more of a delayed market, then impose controls on it because that delay is impacting their community, which only further deteriorates it. It's the self-fulfilling prophecy.
Housing Shortage is a Myth, just like Overpopulation is a Myth.
There is MORE than enough Space, Food, and Structures for the Human Race's relatively tiny population, BUT the VAST majority of that Space, Food, and Structures are possessions or controlled by the MINORITY of Individuals in Governments and a handful of Mega-Conglomerates.
For instance: there would be ZERO hunger in Africa if Governments and Warlords would STOP treating Farms as Political Trinkets and Stealing shipments of Food donations.
There would be NO Homelessness if the Drug, Mental Health, and Economic problems CAUSED BY GOVERNMENT were adressed.
On and on and on.
Crap rolls downhill as they say.
Regulation/zoning is the only reason for shortages. Otherwise people would built speculatively (anticipating demand) much more, and the total amount built would also be much higher
"Most of the great problems we face are caused by politicians creating solutions to problems they created in the first place." - Walter E. Williams
John saying rent prices will eventually come down if we let rent prices go up, enticing builders to build which in turn lowers the rent due to the supply is flawed.
This statement relies on that builders will build an exorbitant amount of apartments in order to tip the supply/demand scale but it just doesn’t happen like that. Builders will stop building once they see the rent prices starting to plateau, not when they hit rock bottom.
Good lord, that councilwoman! My God how can she exist. How does she live with herself.
John Stossel is an American hero and Legend. Where would this country be at about independent journalist like him?
He is the opposite of AOC
That would be her top of the list of of regret in life
We need Stossel force multipliers’
The best thing about him is that his facial hair regularly changes and it makes him interesting to watch.
Does he have children?
Mr. Stossel is a bundle of facts and common sense.
Common sense is literally almost always wrong. Start believing experts not your own uninformed feelings
@@szymonmirek6389 but rent of 2000 or 3000 $ is extremely heavy
@@szymonmirek6389 Saying something is wrong is not proof, it's opinion. Try proving your opinion with facts.
@@donfss5088 jebaited
@@szymonmirek6389 Your reply is lacking common sense.
Never do I ever hear in any of these videos people saying “We need to collectively STOP having all these children to whom we cannot afford to provide a quality life on our collective dimes .. this nation and the world as a whole is RIDICULOUSLY overpopulated
Rent is getting out of hand though.... $3000 per month for a standard to small 3 bedroom is ridiculous. Especially when you can see what the LL paid for the property.... The owners are gouging renters. Nothing wrong with making some $ on your investment but doubling and tripling the mortgage is morally unjust.
There are many, many places to live where rent is far, far below $3,000. Aiming outrage at the boogeyman who is "doubling or tripling the mortgage payment" (I am certain this is quite uncommon) doesn't do any good for anyone.
@@Dan-lt8vm strawmaning my position doesn't help anyone either.... Property purchase price, date, etc is public information. Someone who bought a house in 1995 for 140k paid it off(good for them👍) but now want $3000 per month is not an attack on some boodeyman, its literally what the Boomers are doing to us younger generations.
@@Dan-lt8vm Let me guess, your a boomer who is either gouging your tenants or would GLADLY do so to put a couple extra hundos in your pocket.... 🙄
@@Cannisseur119 I’m in my 30s and don’t own rental property. Also, you don’t seem to understand what straw-manning is.
@@Dan-lt8vm you tried to derail my comment by saying I'm attacking a Boogeyman... Not addressing what I'm talking about.
los angeles, san francisco and new york use rent controls. those are three of the most expensive cities in the country, dramatically higher than even other big cities like chicago or atlanta
And the end result is the most homeless in the country as well.
But if they actually fixed the problems instead of making things worse, why would Democrat voters keep voting for them? 😏
@@johnbaker7322 It amazes me that people don't see the correlation equals causation aspect of that. But then again, there are a lot of people that do not have logic as a primary characteristic anymore. Ugh.
They use rent control because of the skyrocketing rents. Not the other way around. Rent control wouldnt need to exist if financial institutions weren't treating housing like an investment vehicle and pricing out the average resident from their community. With rents doubling since the pandemic for some residents, I don't know why people have the audacity to feel bad for multi million dollar project developers. They're price price gouging a necessity, but its legal for some reason when it comes to housing.
@@juanchavira4882 Estas pendejo Juan. Where has rent control resulted in more affordable housing?
I have owned a few rental properties with a management company managing them. They would tell me that I should be asking $100 more monthly according to the market. I only increased by $25 due to the property taxes going up. I had great tenants that took care of the property, didn't want to lose them. Good on the council woman for a least appearing, hopefully you prompted her to research her decision Thanks Mr. Stossel for taking on issues that others are afraid to look into.
I had a landlord that didn't raise my rent. He said we were some of his best tenants ever. We treated him well and he did the same to my roommates and me.
It is good of her. So many lefties can't even defend their position. Even if she is wrong, I respect her for having a discussion.
sheep, waiting to be culled. charge your expenses fully.
Exactly how it is where I am. I owned my house, then divorced, now I rent. My rent is reasonable, I don't bother the landlord, I understand all my rent isn't profit. I literally have zero headaches. Mail my check every month and treat the place like it's my own.
You are all lucky. Most landlords don't have any rights anymore. It is not worth it unless you are really organized and hire a management company and guess what that does to the rent price?
I live in a 1970 apt and in the 5 years I have lived here my rent has increased by $500 a month. Nothing new has been done to the apartments, if anything things are run down and not fixed. Every time I get a new lease my rent goes up and you cannot tell me there is any justification for this! problem is I cannot afford to move, so I am trapped and have no choice but to keep paying more each year and I get nothing new or better out of it!
own property dont rent. Move out of the area. figure it out yourself.
@@geraldbennett7035 The one thing ignorant about your comment is you have zero clue who I even am and assume I can just pack up and move! I am on disability so no one is going to lend to me to buy a home and likewise I cant just move out of the area because I could not afford to! Any other bright suggestions since you apparently think you have all the answers?
@@kevinm3751 Here's the justification-someone else is willing to pay the price-that's why it went up. Your personal situation as far as inability to buy or move doesn't change the basic realities that include higher demand for properties, higher taxes, higher utility and insurance costs, higher maintenance and raw materials, etc. The same thing happens with houses, but when you own at least you can benefit from the increase in property equity, if nothing else.
If you buy a house you have to put money down pay a lawyer pay a moving van property tax gos up every when you own a home if you own something breaks you have to take care of it yourself the person is on disability leave them alone I bought a house in the 80s we don't have a mortgage anymore but the taxes have to be payed 1200 every 3 months so it's like renting
Homelessness is not caused by homeless people. Its caused by malpractice in the housing industry. We have millions of empty homes no one can afford, and NO starter housing. leaving renters with the choice of taking on "side gigs" to make rent in a home above their means, or live in one of those free range detention centers ("affordable housing") where your every move is monitored by the state.
It’s good to have more slaves …
There are not millions of empty homes anywhere in the U.S. Unless you mean a property which is owned by someone but they don't live in it - either it's a vacation property or they rent it out. Which is their right, as a property owner, to do what they like with their property. And what exactly is this malpractice of which you speak? You're very free with accusations while not giving any details. As for "no one can afford", there are hundreds of videos on UA-cam of people living in tiny homes, bus conversions, RVs, van conversions, all sorts of affordable housing that they manage to find or make themselves. Nobody is forced to live above their means. It's a choice.
There are those who choose to be homeless; and not as the result of insanity or drugs. They pray for us every day from the Kingdom of Heaven. They simply live in a reality where no two tunics are needed and the resurrection is real…so by modern standards …crazy..?
People are definitely being forced to live above their means in this economy, unless the inflation of literally everything in the states doesnt affect you at all somehow i dont understand how you cant see that. Rent in my city has nearly tripled and the wages are hardly keeping up. Majority of people within my city cant even get approved for an apartment on their own. @@mattbosley3531
A big problem is US zoning laws. Hundreds of acres of property across the nation aren’t allowed to be redeveloped into anything but single unit housing. Frankly the government outta ban all non industrial zoning laws
As Ocasio-Cortez says, "People More Concerned About Me Being "Factually Correct" Than "Morally Right". Great work, as always. Keep pushing politicians to make decisions based on evidence, rather than on their feelings, which end up actually hurting their constituents! Thanks!!
Right. You CAN'T be morally right without first being factually correct.
Thats what happens with women in government
Well, we allknowabout DIZZY, DEE aka AOC (ass on charge)?
It's like if you can't first be considered factually correct then why would anyone ever even assume that your morality is right?
She’s neither!
makes me sad seeing John getting older, we need more people like you John
Funny you say that. I was just thinking how he's aging really well. Still handsome and looks fit.
@@midwestribeye7820 Right? Stossel's a stud.
Makes me sad too.
@@StosselTV love your work
. Mark : John can't afford 2 shave
It's always immediate gratification vs Delayed Gratification. Shocker that most adults haven't grown up and just want things NOW...me me me!
My rent went up $30 u.s. dollars last year. This year i just got my lease renewal and it went up $300. For an apartment in the borderline ghetto. Where do people move to when rent gets that high? Gas is more ,food is more ,rent is more. I wasn't poor 2 years ago. Now i am.
Move to where rent is cheaper which maybe in another Suburb, City, or State.
Sweden has had rent control since WWII, the average waiting time for a rental apartment in Stockholm is now 10 years. People register their kids on waiting lists when they are born. This is effectively the exact same problem as the Soviet Union had on pretty much every product.
Just like ordering a trabant 601 deluxe
_With a two stroke engine this is a modern feat of enginering, 70 years ago_ buy one today!!!!*
(*wait time may be approximately 10 years.)
So no one wants to build NEW, so you have a huge supply shortage because of rent control. Thatis just insane and yet nothing is done to change things.
@@jbdragon3295 It's not that no new rental housing is built but for decades supply was way below what was needed. Now in some municipalities construction companies wanting to build condominiums are forced to build rental housing as well to get building permits.
Fully privately owned apartments were not legal in Sweden until very recently (you could own a house) so condominiums and rental were the only form of apartments available. This of course set the rental market even more off.
That is interesting. Where do people live in the meantime?
@@beng4151 Where do people end up when there's an artificially created shortage? The Black Market!
People are staying longer with their parents or subletting, often illegally. But a lot of people end up on the black market, illegal garage conversions, industrial buildings, atticks, basements, even caravans and tents in some extreme cases.
Illegally converted apartments, just in my apartment building (condominium) two owners have been evacuated in the last two years because they converted their apartment into two smaller apartments without permission. This is quite common especially around Stockholm.
I left New York City in 1979. I lived in a rent controlled apt. that I paid $125/mo. In the winter the landlord shut down the heat and hot water after about 3 weeks into the month because there was no more money for fueling the building. I watched thousands of buildings burn in the Bronx. It became such a Sh--t hole I left and moved to Florida. That was 42 years ago and I never looked back.
I respect her for interviewing. If she truly wants to advocate for the most cost effective housing, maximizing choice for people, and ensuring quality and good service she’ll do her due diligence. Rent control is like a tornado that doesn’t reveal the destruction it causes until many months, even years down the road.
People wouldn't need to even worry about not being able to afford rent if we didn't have a monetary system designed to be tied to gold then abandoned it when the government's addiction to money printing started to get noticed by the rest of the world.
"We have to act now!" - The clarion call for something that absolutely does NOT need immediate action.
is ALWAYS, "We have to act now!"
@@cda4662 or
_THINK OF THE POOR CHILDREN_
_THEY'LL NEVER LEARN THEIR GAYBC'S NOW!!!!!_
"Don't elected officials research issues before imposing government force on others?" No, no they don't.
1% of US cities have rent control (6 of the 50 largest), most of them are in 3 states.
More than 20% of American renters spend 50%+ of their income on rent.
@@MorphingReality I don't know about 20%. I think it is higher since 50% is just below the calculated median in 2018 people spend as a % of their total income on (let alone today)
@@iguess2739 The figure I found was 23%, in any case its too high.
According to iPropertyManagement, 0.11% of rental homes are rent-controlled, and a minimum wage worker would have to work 127 hours a week to afford an average apartment.
Question: why move out when still on minimum wage then?
I get those who are hard up and have some family issue they're escaping fron. But that aside, why move out before you got enough stuff together to deal with rent?
I have a suspicion that some, not all but some of americas housing issue is due to an overly hard push for young adults to leave nest
@@Eva9000 The answer will vary case by case, but I can try to address some common factors.
In terms of things driving people to move out, home size is one, autonomy is one, accommodation is another. For men in particular dating prospects are relevant.
A lot of people are in a bit of a limbo where they moved out 5-10 years ago but only now are seeing their costs balloon beyond their means, and they have to downsize or find roommates or move back with family.
Generally though, a lot less people are moving out, the percentage of 25-29 year olds living with parents in the US was 25% in 2014 vs 10% in 1970.
Though its also worth noting that those numbers were similar before 1940, at least in the US, which isn't necessarily a good sign, but its a kind of relief to know it isn't a completely novel phenomena.
@@MorphingReality didn't know about the dating prospects. Lol
If they're paying that much over a long time (10+) years they might as well try buying instead, stay at parents a bit save for a deposit. Depends they can put extra dough each month for mortgage or if they're already paying someone else's (it varies). Otherwise if it's the latter your money just go down the drain
@@Eva9000 I generally agree, and the stats reflect more and more people going in that direction.
However, people find themselves saving for a down payment that is reasonable in year x but not 5 years later, they see their prospects running away.
her vague stare SAY'S IT ALL
I have hear that some landlords just let the property go to the municipality when it cost more to fix than they can make. The municipality gets it and can not maintain it or sell it, they evict the tenants and condemn the building, nothing is built to replace that apartment block. 25 units are now gone.
My boss is a landlord. He refuses to raise the rents beyond his yearly increase in taxes, insurance & repairs. He has a fixed mortgage rate, so his mortgage payments don't increase. His philosophy is : What goes around, comes around.
Wonder how much he raised it the past 2 years. Those expenses you mentioned have shot up.
sounds good, up until the rent cap doesn't allow him to cover the increase in his costs.
The fixed mortgage of an existing structure allows him that leeway to control his costs. imagine if he wanted to build a new structure and the cost of building materials and labor was double what it was a couple years ago but the most he could rent it for was fixed to what rent was two years ago. would he be willing to eat the loss or would he just not build.
@@mph5896 Yes, they have He raised the rent 5 % in 2020, 2021 & 2022. He started out in working class family, went to university, then optometry school. He says he knows what it is like to be uncertain about the future. This is cruel to unduly profit from American's poor choice in a president.
@@douglasjacobs882 I agree. Fortunately his property is in Tampa, Florida. Tampa is still a free city. If he built a a new structure, yes, things would be different; he would have rents reflect Bidenflation costs.
You see, this is the beauty of a free economy. Minimum regulation. People making their own decisions. If your boss don;t wanna raise rent, he is more than able to do so.
When the price of wood is up 300% and gas went from $2 to $5, who can afford to build houses?
Had a rental before. Trust me, there wasn't any money to be made after insurance, taxes and repairs. Depending on the tenant, you might break even. If there is any profit, you'd better keep it for repairs,
The pause was stunning. You can see her brain slam headlong into facts and simply reject them without a thought.
"guarantee housing"? South Africa's constitution "guarantees" housing as a human right, ask them how that's going. These magic wand politicians astound me.
I understand why people want to use government to solve social woes. I get it. But if you're going to do something to help people, you better make sure it actually helps people and doesn't make their situation worse.
@@TheRisky9 and that's the problem. Government plans almost always involve bad negative incentives and unintended consequences.
"We don't need more studies, we don't need to collect more data." Well of course you don't, you and your fellow professional activists would be out of a job if people read those studies.
How do activists make money?
@@ahmeteminerdogan9266 This particular one works as a campaign manager for an activist organization.
Well if rent must go up, then wages must keep up. Why CEOs pay themselves millions is beyond me. Cost of living is also crazy high. Why an iPhone costs 1000 is ludicrous
Not allowing more housing to be built is what really destroys.
And mega pacs that buy up thousands of homes have a vested interest in insuring new homes aren't built. After all, it lowers the value of their property. Behind every new property plan that is shut down is a city council of supposed anti regulation conservatives perfectly fine with regulations when they keep their bottom line up.
I have to give respect to Aisha Chughtai. Even though she got destroyed, she agreed to be interviewed (unlike EVERYONE else). I think she has a good heart and genuinely wants to help people. Her pauses give me hope because instead of giving a canned answer to a question, she's thinking about it and (kind of) realizing she's backed into a corner. Maybe she will eventually see the folly of her ways.
I'll debate Stossel whenever
Shes a typical liberal who is ruled by feeling and emotions and not facts. Thats why liberalism is a mental disorder.
@@MorphingReality Sure you can. The only one who has is a fake wrestler.
I agree. At least she is not giving a wokified response like those Brandon nominees for Federal appointments when questioned by the Senators and Representatives in Congress during the confirmation hearings.
@@paulk9985 Gee maybe that is because he doesn't want to have serious long form discussions with qualified individuals :p
Why anyone wants MORE government involvement in their lives is beyond me. The government is far too incompetent to succeed at anything. As the saying go's, there is nothing scarier than the words "I am from the government and I am here to help.
Do you want to work 16 hr days, 6 days a week for a small hourly wage? No? Because there are labor laws that prevent that. Go back to 1822, you knuckledragger.
PS, that Reagan quote is really funny considering he pushed the war on drugs AND helped trade guns for drugs to help fund the Contras. Moral of the story; people who say they want small government usually want big government to enforce their morals or finances on others. Libertarians like the Koch brothers and Peter Thiel are prime examples of modern small government chatterboxes that lobby for laws and pull subsidies.
Living in "affordable" i.e. HUD. state controlled housing was the most terrifying experience of my life. Id rather be homeless than do that again.
I think, there is a small group of people, causing all of this racket & wanting government interference...BUT they are very loud
I worked both in the Twin cities and Chicago as a union carpenter during the building boom. I wouldn’t want any of the units that I built, even the high end. Green building has been extensively advocated since the 70’s as a more sustainable approach to building. However, when the free market is allowed to go unchecked, you get real estate agent demanded finishes, unusable square footage, minimal insulation and framing, and a “tail light warranty”. Not only do renters deserve better, but homeowners who plan to ride out their mortgage do as well. What I love about St. Paul is the wealth of knowledge and skills laying untapped beneath the surface. Even if it takes the largest rollout of non-for-profit projects ever witnessed, they will find a way. Viva la socialism🥳
That pause, yikes!
That said, in BC, Canada - there is a rent control of 3% max per year. In the Lower Mainland (City of Vancouver and nearby cities) builders are still building but rentals are extremely expensive and availability for cheap rent is non-existant.
I'm a landlord in St Paul, we are limited to a three percent increase per year, yet our property tax increase has been about ten percent a year for the past five years and we're expecting utilities, especially heat, to increase by twenty percent this year. how fair or reasonable is this.
Sell. Let St. Paul live in the streets.
That's what Democrats want
Did you know that you can get a base rent plus property taxes in a rental agreement so you can make the renter pay property taxes?
I live in NYC. In lower Manhattan, it's been pretty much a ghost town for the past 18 months because property owners are refusing to lower their prices to meet demand, so they're holding their properties waiting for a bubble to burst. This is something I would really love for Stossel to look into and compare with his findings here.
Maybe they are afraid of lowering their prices and then get hit with rent control laws.
the market will eventually correct
Or you discovered money laundering property owners... Lower Manhattan sounds like the perfect place to buy property above market value and hold long enough to not raise suspicion then sale to create clean cash.
@@sstrange1973 no it's mostly commercial buildings that closed down at the start of covid and never reopened, but the property owners are rejecting offers.
Maybe instead of rent control government should lessen taxes to make affordable housing? Idk
1% of US cities have rent control (6 of the 50 largest), most of them are in 3 states.
23% of American renters spend more than 50% of their income on rent.
Yep
Maybe that city council member pausing is a moment that she was thinking. Maybe you got through to her. I hope she keeps thinking. I hope she changes her mind. Her bad ideas will hurt more people.
hope in one hand and defecate in the other. Tell me which one fills up faster.
She claimed to be a socialist, yet couldn't answer where on Earth socialism actually _WORKS_ !!! I'd say she's both clueless & hopeless.
Thinking of an excuse maybe, they only want votes!!
she won't, she will lose being their representative and you can see she loves her position
She ain't thinking critically. She's thinking of excuses
She's going through her list of scripted talking points, looking for one that seems relevant.
As a landlord, my rents have increased dramatically in the past few years. I feel sorry for my tenants and don't know how they can bear such costs. But the fact is that my rents have increased by approximately the same amount that my property taxes, materials and labor for repairs, and personal food and transportation costs have increased. And those costs have increased by approximately the same amount as government spending, the national debit, and the new currency printed by the Federal Reserve to facilitate that debit.
what? you must be a rich pig. governement promised us to take care of everything? are you criticizing our great lgbtqaszxwsu leaders? Re- education camp now, NOW!!!!!
Hey, you gotta eat too.
If the democrats want to drive prices up, we gotta drive our prices up with them to survive. Sad truth.
Geez, who would have imagined that raising cost on maintaining property and keeping up to date to regulations would drive the rent up.
Actually quite scary to have these dumb bricks of politicians being in charge.
Rent control is a very effective way to kill a city!
This is exactly what I learned in my micro economics course in the first week.
Wow.. that pause was delicious. An actual moment was captured when the light bulb came on.
Mt. Stossel forgot one thing. In my city, about five years after rent control, landlords started turning their apartment blocks into Condos --- taking supply off the market.
It got so ridiculous that well paid professionals such as Doctors couldn't find a decent place to rent ---- so they didn't move in to my city.
After all, who wants to try out a job in a new city if the first thing you have to do is buy a house there ..... and then hope the job works out?
Welcome to Seattle.
That's what happens when you make apartment building more prohibitive than home building... buying actually becomes cheaper than renting. Kind of insane.
Non-American here- what is a condo and how is it different to an apartment?
@@mrg7405 You typically own a condo. They're in similar apartment style buildings, but the unit is yours much like a house would be. You can remodel and do what you want with the place, although typically each building has an Homeowner's Association (HOA) with rules you have to follow.
@@mrg7405 You rent an apartment. You own a condo.
You just KNOW that female city council member wanted to say, “REal SoCiAlism waS never TriED!!🥴”
Here's a novel idea , Property Tax Control.
Here in San Francisco is a mess. The control rent makes a mess in apartments.
As a Landlord under rent control, I will increase rent to the max level I can every year. On the other hand if I can control rent to what the market shows, I will let rent stand for years at a time. But under rent control, I will never let my self get locked into a low market value on my rent, so I will increase rent to the max every year.
Ah, you just go to a different area that doesn't have those games to play.
Agreed. As a landlord also I will often not raise the rents for several years usually waiting until someone moves out and then adjusting. But yeah if I was under rent control I would be doing the same thing.
@@mph5896 : you can't just pack up the house/building and move it to the next county/state.
@@josealexi5141 You are correct, BUT you sell it or don't buy it.
I’m a landlord and charge under market by not increasing with market increases. Lower turnover, less expenses.
As a landlord I can say with certainty I cannot just “just jack up rent whenever I feel like it”
So...you don't raise the rent yearly by the maximum allowed by law?
@@Pube83 No sir, it’s expensive to get new tenants in so you want to keep the old ones even if it’s at a slightly lower rate than the market. I had to raise the rent ($50/mo) for the first time in 4 years because property taxes went up by several hundred dollars.
there are different landlords with varying thoughts about the subject.
some keep rents and rent raises at very moderate levels, in hopes of keeping the same renter for decades.
some want to increase the rent yearly as much as possible. even if their place would sometimes go empty for real chunks of time between renters and even if their renters would change very often.
well you could but people would leave and then you go from making some money to making 0
@@kingchddg90 exactly.
3:55 did anybody cheer when he asked "don't elected officials research the issue before imposing government force on others?"?
my grandfather was a landlord. it wasn't as profitable as people think. he made decent money but he wasn't made super rich off it.
This definitely did not go the way she pictured it! Thank you John for the work you do! Us real grateful Americans truly appreciate it!
Last month I successfully argued against rent control in my local FB group to the point that the woman advocating for it changed her mind. Funniest part was when she admitted her parents and grandparents are landlords.
I have a friend that rents. For whatever reason he was unable to afford to buy a house during the period in his life in which he was employed. Now he's retired and on a fixed income, yet his apartment complex raises the rent every year, year after year. What is he supposed to do when his rent exceeds his income?
@@donmiller2908 The Stossel answer is essentially to move.
In any case, more than a fifth of American renters spend at least 50% of their income on rent, that is almost 10x more than are affected by rent control.
According to iPropertyManagement, 0.11% of rental homes are rent-controlled.
@Vinay A Thank you and lol not very often anymore. In this case the person didn't really understand what she was advocating. I was a little proud of myself for making the case against it clearly without having to rely on videos like this from John.
@@donmiller2908 he should move to a cheaper place or city and serve as a warning to others to not be so irresponsible.
CONGRATULATIONS! Let's give this FB keyboard warrior a medal and a round of applause.
The funniest part is that you don't understand how an individual's situation might be different from their parents and grandparents.... Almost like we shouldn't use identity politics, oh, yeah 🤦
The most astonishing part of this interview was when John Stossel asked the rent control advocate “why would a developer build an apartment building if he/she is going to be limited to a 3% annual increase in rent which is lower than inflation?” The rent control advocate answered “if people can’t afford to live in a city, then you won’t have a city anymore.” Her response completely fails to address the economic realities of the situation. It is the restriction on profits through rent control that will create a housing shortage and that, in turn, will lead to unaffordable rents. In other words, her actions are at odds with her intentions, yet her only response is, essentially, that the people need what the people need and therefore they must get it (never mind that no one is lining up to provide it). If she gets what she wants, then the people that she is trying to help will be worse off than they are currently. She doesn’t seem to recognize this. She simply manifests a stubborn adherence to a demonstrably failed economic system.
I’m a landlord in San Francisco. I’m taking my property off the rental market and selling. The tenants have all the power. The homeowners pay surtaxes and other payments to finance city projects. The renters pay nothing. Open market and competition is what lowers prices.
As a home owner and resident of the twin cities suburb area, I can confirm all of these statistics are correct. People are fleeing the downtown areas and moving away from the city, thus increasing even outside city rent as well now.
Also don't forget the crime in Mpls/St. Paul is pushing people to move to the suburbs as well which isn't helping the rent situation either
Respect to the councilwoman for stepping up to speak, but essentially saying "I don't care, I'll stick to what I think regardless" whilst having this dismissive air as if to say "How dare you voice criticism" is a BAAAAD look. Too often, it's "I think this SO" not "I think this BECAUSE"
The good response to these socialist types is "Look, I know your heart is in the right place and you're trying to help and you care. But these policies are destructive and do the opposite of what you're trying to accomplish."
Rent control makes landlords richer and more tenants homeless.
False on the first part but correct on the second. Rent control stifles income growth as well as destroys new construction, which contributes to more homeless, because of a lack of new rental property.
The real problem, according to some voices from various points on the political spectrum, is zoning. Neither rent control nor the market will result in enough affordable housing if zoning is so restrictive that there is no place in a city where the needed housing is allowed to be built at all.
And to make building happen, we need to dramatically cut back on all the red tape for building a house or building. It is a nightmare. I'm not even allowed to do renovations of my house without city permits, that is crazy!
We need to cut the red tape for building in general.
I think a lot of that started because people were using asbestos insulation and lead paint, neither of which is a problem today but they still like to get their fee for checking in on you.
I am surprised people are still willing to be landlords with how screwed they were with not being able to evict people. When these same people were using the stimulus to get big tvs and other things instead of paying rent.
I was working Target electronics through the early pandemic, every other TV and cartfulls of video games and action figure collectibles were all on unemployment debit cards. Only scraps of that money was going to essential needs, far as I could tell from my view at the time
Too much money let alone interviews are important for sniffing out those in chronic debt. Though I find the video crazy too given the other extreme tripling rents in CA. But I think it used the wrong title of hurting renters over landlords and homeowners. I do remember the murderer who killed his landlord who wanted to collect on reduced rent.
In the big picture, most landlords contribute very little to society (unless they develop property). They don’t deserve any favors.
Let them all go broke!
@@brianjamds6617 that's an extreme in the other direction though as footing such a large bill needs help (maybe free health insurance if they don't spike rents and include air conditioning for example). There needs to be swift action for repairs as well as the subleasing Airbnb bs that undercuts them.
But I doubt the swamp will be drained of bad actors given the video.
@@brianjamds6617 broke landlords equals broken homes. How can they repair anything without money?
Also, if you want to have the cheaper option of renting you need a landlord somehow. Otherwise it's only racking up the money to buy or stuck at home with mom. The only other option is more government housing.
The government has no business in this.
Lived in Canton for a year with some blokes from high school during the pandemic. Each room was 700 a month without utilities included. A room mind you. In 2021 the landlord hiked the rent 200 dollars. Nothing changed the mid terms quality of living. Landlords just wanted to get paid more, and they finessed PayPal to avoid paying taxes on their rent money.
I was renting out an apartment in Florida recently. The prices felt very high in the area I was checking out and I talked to the folks in that area. They explained that since it was close to a military base and there were a lot of people who moved in spurts, rent prices there were up, but if you went 10 miles down the rents went down significantly.
The price was based not on the Greed, but the market conditions that one needs to go and research. It is important to talk with everyone involved with the industry and you can find out why things are the way they are and what you can do about it.
One suggestion by the people in the area that I knew was the improvement of the local roads and building of new ones as that would make the commute shorter allowing for people to be more accepting of a commute and opening up competition and expanding supply. Beforehand, I never thought of the idea that improvements to transportation can bring down rent prices, but it seems like a very effective thing that people can advocate for.
No. It's 100% GREED.
@@vikingkirk762 is greed bad
@@vikingkirk762 I live in Central Florida and it's pathetic on how much rent has gone up for lots of families...WHY?....corporate investors have come in and over paid for houses and ruined the American dream for middle class families and are gouging people to rent their properties...as a result I have seen families struggle with relocating out of the area to find an affordable place to live...this is real hard on families with kids in school...land lords who have owned properties for years have jacked up rent as much as 700 dollars a month...WHY?.....out right larceny.
@@SigFigNewton landlords show up to shut down new developments every opportunity they get and help fund commercials to remind its home owning city members that housing development will lower their property values too. Pretending they are pro building is ridiculous. 99 percent of landlords are buying properties that already existed and contributing effectually nothing but being a leach to society.
That silence by that Socialist Minneapolis City Councilwoman was so deafening I couldn’t hear anything she was saying!
I have ZERO sympathy for the residents of Minneapolis. They voted these ignorant socialists in, they can suffer the consequences.
I paid cash for my house. Aside from taxes I'm done with the money game
"Market sets the price." I've heard that one before. And look at what we're at now?