What would happen if we were to hypothetically pass a law capping rental prices at 40% of the local median income for a 2 person home?
I live in Seattle and the price increases are insane. Back when I was working in property management in 2016 I leased out a home for $1850 a month, the rent estimate for that home now is $3200, that is a 12% increase in rent PER YEAR for the past 6 years.
So what is preventing us from passing a ballot initiative (people’s vote) that puts a strict cap on rent prices based on the local median income?
I can only see pros:
1 – It would knock down the current crazy pricing to reasonable levels
2 – It would pull a sizable portion of the population out of poverty
3 – It would stop inflation instantly
4 – It would put a bunch of slumlords and big real estate buyers out of business
5 – It would push the market back down to reasonable levels