Gov. Gavin Newsom of California threatened to redirect funding from counties that fail to reduce homelessness in their communities during a visit to Pacoima following his controversial order for state agencies to remove encampments.
Rent control disincentivizes building new apartments though. That is, if I take out a load of debt to build a $10M apartment, and due to rent control my profit is going to be capped at levels that are probably below what I could get through low-risk treasury bills, why would I build anything? Sure, you can get it built by the state, but states have a distressing tendency to stop adequately funding required infrastructure and not do necessary maintenance in a timely fashion (more so than most shitty apartment complexes even).
I entirely agree that NIMBYs need to be steamrolled though. High-density housing is far, far better than sprawl.
Rent control disincentivizes building new apartments though. That is, if I take out a load of debt to build a $10M apartment, and due to rent control my profit is going to be capped at levels that are probably below what I could get through low-risk treasury bills, why would I build anything? Sure, you can get it built by the state, but states have a distressing tendency to stop adequately funding required infrastructure and not do necessary maintenance in a timely fashion (more so than most shitty apartment complexes even).
I entirely agree that NIMBYs need to be steamrolled though. High-density housing is far, far better than sprawl.