Argentina's implementation of 'second-generation' rent controls has led to unintended consequences in the housing market. Rents have increased 1.7 times faster than inflation, prompting 45% of landlords to exit the market. This has resulted in up to one in seven properties in Buenos Aires being left vacant. Critics of the policy, including free-market advocates, have highlighted the inefficiencies and disinvestment caused by the rent controls, which have paradoxically led to higher rents instead of the expected decrease.
Local investors passed on pretty much every vacation rental we’ve purchased I think there’s something about living in a place where you just see the negatives But when you don’t live there, you might see the positives https://t.co/T8gqbizPBE
It’s truly amazing that people think that rent controls work and somehow help the rental market. Argentina is providing a great look in to why it doesn’t work. https://t.co/cR7fztFAjh
“Milei took his chainsaw to rent control and other tenancy regulations. The result has vindicated economic theory: the supply of rental accommodation is surging and rents have tumbled” Policy changes often remind us how terrible economic leftism really is https://t.co/kVXOceERxh
"Rent Controls" via @ATabarrok https://t.co/hNUqea38om @MrRBourne
Story on why being a cheap landlord and hiring bad property management = being stupidly short sighted and losing so much rental income In the past decade of living next door to a rental, we have spoken to multiple tenants, and heres just some things we've seen/heard. PS I live…
"Argentina offers a textbook study in why rent controls are a bad idea" via @MrRBourne https://t.co/z23bsGLSkn @JMilei https://t.co/QzdbK4XAYl
Free market economics did not, it turns out, go far enough: rent control in Argentina didn't merely introduce inefficiencies and disinvestment along with lower rent, as we'd expect... it had all the inefficiencies and *raised rent*. Just a massive own goal. https://t.co/1gCnv3LJZZ
Argentina brought in “second-generation” rent controls that some people (even YIMBYs) want in America and the UK. Rents grew 1.7x faster than inflation, 45% of landlords left the market, and up to one in 7 properties in Buenos Aires was left vacant. https://t.co/NBdMPJSofn