Why Rent Control Might Be A Bad Idea

$1,981 is the typical monthly rent in the United States based on most recent data. More than 19 million renters are considered ‘rent-burdened’, spending more than 30% of their income on housing costs. As concerns over rent affordability mounts, support for rent control policies have also gained traction. So can policy make rent more affordable in the United States? And if so, what would it look like? Economists argue that rent control would deter developers from building more homes, which would only worsen the housing supply crisis in the United States. America already suffers from a deficit of 3.8 million homes, especially at low-income price points, according to Habitat for Humanity. “We have not invested as a nation in building the supply of housing in a variety of communities, in a variety of different price points. We’ve instead relied on the private sector to do so,” said Sharon Wilson Géno, president of the National Multifamily Housing Council. “But unless that money comes into the market and investors see that as a better investment than some other kind of equity or some other kind of investment, they’re not going to come.” Watch the video to find out why so many economists are against the idea of widespread rent control. Chapters: 01:45 — Rent control 04:37 — Implications 08:38 — Federal policies Produced by: Juhohn Lee Additional Camera: Charlotte Morabito Supervising Producer: Lindsey Jacobson Graphics: Jason Reginato & Alex Wood Special thanks to: Communities Resist » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook:  Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC Why Rent Control Might Be A Bad Idea