17

Rent control will over time decrease the supply of housing while increasing demand causing a housing shortage. Moreover, there are also studies that show that under rent control there are not just shortages of houses but also misallocation, that is the houses are no longer allocated to people who have highest utility/consumer surplus from having them (...


10

This answer is based on Mowzer's comments. Property development companies will not invest in existing apartments in Berlin, because they can achieve a higher return in other cities. Property development companies will not invest in new apartments in Berlin, because they think the city government will apply rent control to new apartments - something they ...


9

The Iranian organ market It might be worth looking into the organ market in Iran. Unlike in other countries, it is legal to sell your kidney to patients who need a new one. The process is regulated and charities actively help pay for patients who cannot afford to pay the donor themselves. The result is that a kidney, which would cost more than $100.000 on ...


8

As someone asked in a comment why would this lead fewer new houses being built; the logic of the developers is rather simple, e.g.: Deutsche Wohnen CFO Philip Grosse said in an interview with Bloomberg that the firm is holding off on construction in Berlin, and instead will look to other cities to make new investments. The company said earlier this month ...


5

One example of what you are looking for would be drug prohibition. A drug prohibition cannot effectively eliminate drug supply only suppress it so I suppose that would qualify as control of supply. Studies show that lifting drug prohibition leads to higher availability and lower prices for drugs but at the same time these effects are not always large even if ...


3

With rent controls and the resulting excess of demand over supply, middle-class white people with stable jobs do very well, and other people find it impossible to find housing. Where landlords can’t use the amount of rent that potential tenants are willing to pay in order to choose between them, they are forced to use use other criteria. Some of those will ...


2

Well one obvious prediction is that a smaller percentage of the Berlin population and economy will be involved in speculating on rent prices. Less of the overall activity will be directly or indirectly related to purchase, development, redevelopment and sale of property. Lending will be more available to other areas of the economy. Industry will be more ...


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