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Profiteering and Property Taxes
When a landlord raises the rent, he is often accused of profiteering—making an “excessive” or “unfair” profit. Those making such claims seldom present any evidence, other than pointing out that some corporate landlords generate billions in revenue. However, revenue is only one factor in determining profitability. Expenses—insurance, maintenance, mortgage payments, and property taxes—must also be…
Ballots vs. Bullets
Rent control has long been presented as a way to keep housing affordable. By forcing landlords to charge below market rates, rental housing is supposedly more affordable. But like any form of price cap, rent control ultimately leads to a lower supply of housing. However, this fact is irrelevant to many. Indeed, next week voters…
A Property Tax Freeze
The City Council of Knoxville, Tennessee is considering a property tax freeze for some apartment owners. Property owners who choose to participate in the program will be encouraged to keep rents affordable for low- and moderate-income households. Given that property taxes can be one of a landlord’s biggest expenses, this proposal could provide significant relief…
When Principles are Absent
Rent control hasn’t even taken effect in Boston, and already the consequences of rent control are being felt. Banker and Tradesman reports that building permits in Boston declined 94 percent between 2021 and 2022. Boston Mayor Michelle Wu and others have claimed that rent control will not lead to less new housing construction, despite what…
A Lesson from Road Subsidies
In the early twentieth century the Good Roads movement successfully framed improved roads as a “public good.” Better roads, the movement argued, would enable food and manufactured products to be more easily distributed and everyone would benefit. Therefore, free, improved roads should be provided by government. Today, housing advocates are making a similar argument. If…