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At Volokh, Ilya Somin discusses a recent piece in the American Prospect (also linked from here) that favors “New Urbanism” to prevent “unwalkable” sprawl. Somin favors “voting with your feet” as the preferred method of satisfying location preferences. Unfortunately, voting options have been whittled down through government interventions: To the extent that we do need to enable more people to live in densely populated urban areas, it’s far from clear that government planning is the best way to achieve that goal. We can better achieve the same objective by cutting back on planning rather than increasing it. In many large cities, the cost of housing is artificially inflated by restrictive zoning laws, which tends to price out the poor and some middle class people. In the suburbs, as Adler points out, zoning policies sometimes artificially decrease density, for example by forbidding "mixed use" neighborhoods where commercial and residential uses are in close proximity to each other. The ultimate question is whether we should trust deeper interventions into land use to fix the complete failure of past interventions. Long before “New Urbanism” was the progressive utopian ideal, sprawling, auto-friendly and trolley-free, single-family suburbs was their “American Dream”. But, progressives quickly forget their history when it turns out their past visions created something they are now supposed to hate: Like previous generations of planners, the new urbanists often ignore the diversity of human preferences. Some people do indeed like high-density "walkable" environments. Others prefer to have more space and more peace and quiet. Neither preference is inherently superior to the other. To paraphrase a popular liberal slogan, we should celebrate diversity, not seek to use urban planning to force everyone to live the same lifestyle whether they want to or not. The post evokes the typical variety of comments ranging from standard […]
Ilya Somin at Volokh – Causes of the Defeat of Proposition 98 There were two major causes of Prop 98’s defeat. One was the sponsors’ mistake in combining the popular cause of restricting eminent domain with a far less popular phaseout of rent control. The second and more unusual cause of 98’s defeat was the presence of Proposition 99 on the ballot. If you are interested in this, please check out Ilya Somin’s extensive writings on Proposition 98 and 99 at The Volokh Conspiracy.
Ilya Somin at Volokh: Why California’s Proposition 99 is a Lot Worse than Nothing Yesterday’s California returns show that Proposition 98 – the referendum initiative that would have imposed real restrictions on eminent domain and also phased out rent control – has been overwhelmingly defeated by a 61% to 39% margin. The rival Proposition 99 – an initiative sponsored by local governments and other pro-condemnation interests that only pretends to protect property rights – passed easily by 62 to 38.
Ilya Somin at Volokh: Polls on California Eminent Domain Ballot Initiatives Show Prop 98 Likely to Fail and Prop 99 Likely to Pass: In a recent Field Poll cited in the article, Proposition 98 was losing by 43 to 33 percent among “likely voters,” while Proposition 99 was ahead by 48 to 30 percent. A slightly earlier poll conducted by the Public Policy Institute of California has similar results. If, as is likely, Proposition 98 is defeated, it will probably be a result of the combination of the sponsors’ tactical error in combining the popular anti-eminent domain measure with a far less popular phaseout of rent control (a mistake I criticized in one of my earlier posts), combined with the presence of the deceptive Prop 99 on the ballot. The latter probably led voters to believe that they could protect property rights against takings without simultaneously attacking rent control. Keep your fingers crossed….
With New York’s new Governor’s rent subsidized by his landlord and California debating the best ways to end rent control through Proposition 98, I thought it was a good opportunity to discuss the negative aspects of rent control. This post is the second in a four part series on the rent control. Read all four posts: Rent Control Part One: Microeconomics Lesson and Hording Rent Control Part Two: Black Market, Deterioration, and Discrimination Rent Control Part Three: Mobility, Regional Growth, Development, and Class Conflict Rent Control Part 4: Conclusion and Solutions Black Market and Deceptive Acts As current renters hoard their rent-controlled apartments, it is rare that new apartments become available. Sometimes, tenants would illegally sublet their units at higher rents. Landlords do under-the table deals or rent to friends and family. New York had to crack down on landlords charging “key fees” as high as several thousand dollars to new renters. Landlords will often find loopholes that will let them de-regulate a building, just to be released of the financial burdens. For example, in NY landlords will take their rent-controlled building and deregulate it by using the entire building as a residence for a certain number of years. This is space that could otherwise have been rented at a market rate. Deterioration of Existing Housing Stock Because of the disincentive to improve and maintain the property, landlords will often become slumlords and allow unhealthy conditions or activities to take place in the apartments. This lack of improvement not only is unpleasant to the current renter, but accelerates the end of the usable life of the aparment building. The Rand Corporation studied Los Angeles’ rent control law and found that 63 percent of the benefit of lowered rents was offset by a loss in available housing related to deterioration and […]