The bit that "Even if they currently don’t have enough money in their balance to pay rent, [household's] won’t complain and will instead spend less money on resource consumption." seems to be important too...
<a href="https://store.steampowered.com/news/app/949230/view/4145079671516384052" rel="nofollow">https://store.steampowered.com/news/app/949230/view/41450796...</a> actual article<p><a href="https://news.ycombinator.com/item?id=40674208">https://news.ycombinator.com/item?id=40674208</a> prior discussion of another generic write of the actual article
For rent control you need to imagine landlords like pest in nature. How you control pest? By introducing predator that prey on pest. Or you can control resources that let pest thrive. For Ametican landlords there are no true predator other than governments. And governments typically are slow while landlords can adapt faster. In this case government would be like sabretooth tiger or megalodon predators moving so slow unable to do much to catch preys. The 2nd thing is the resources. Landlords thrive because asymmetric information. Renters find hard to negotiate. Renters also become desperate when public transports become limited in a highly demand area with no alternatives. Once you start to see this problem predatory-prey relationship, landlords as pest can be put under control. I suggest you guys read up how Singapore government control landlords. They have very practical and innovative ways that span decades of planning into future. Even though land is incredibly limited and cost of living high, in terms of available and affordable rents to citizens and foreigners will put London, NY, Tokyo to shame.
"Pac Man found a Solution for the Perfect Game: Get Rid of Ghosts"<p>The number of people across all platforms hosting this story who believe this is somehow proof of anything is staggering.
Russia does not have landlords (as a medium business). Virtually all apartments available for rent belong to moms and pops who happen to have a surplus so they're renting out. They usually have just one property which they rent out.<p>Add to that retirees who lend out their 2nd apartment to live off it.<p>The prices aren't exactly low but the market is pretty durable as the result. Lots of offerings at any moment at competing prices. The regulation is also almost inexistent.
See also<p><a href="https://news.ycombinator.com/item?id=40674208">https://news.ycombinator.com/item?id=40674208</a> (<i>"Rent in Cities Skylines 2 was too high, so the devs removed landlords (arstechnica.com)"</i>; 3 days ago, 90 comments)<p><a href="https://news.ycombinator.com/item?id=40676408">https://news.ycombinator.com/item?id=40676408</a> (<i>"Land value tax in online games and virtual worlds (2022) (progressandpoverty.substack.com)"</i>; 3 days ago, 399 comments)
I'd have loved seeing a proper reflection of capitalist economics where rents get so high a large chunk of the population ends up homeless and fully destitute.
> Now, Colossal Order says, it will be based on a household’s income: “Even if they currently don’t have enough money in their balance to pay rent, they won’t complain and will instead spend less money on resource consumption.”<p>Good idea, negative reward for increased income. Sounds like a socialist utopia.<p>I believe a better option would be to remove mortgages. I have a few reasons for this:<p>1. Houses are priced based on what people are able to pay for them, they cannot hold more value than people can afford. Additionally, there is little incentive to purchase a home when you are old. A mortgage essentially allows a person to borrow significant amounts of money from their uncertain future.<p>2. Mortgages are becoming unreasonably long. There is <i>nobody</i> that can reasonably suggest that they can afford to repay a mortgage over a period of 50 years. You cannot predict that far into the future regarding your health or employability. We have people now getting mortgages that will last well into their retirement, there is no real hope of these being paid back.<p>3. In almost all economic turmoil, mortgage issues exasperate the problem. It very quickly becomes a negative feedback cycle. People fail to make payments, banks see increased mortgage risk exposure, mortgage rates are increased, people are less willing to get mortgages & more people fail to make payments, house prices drop significantly - suddenly multiple industries collapse.<p>Of course in practice this will not be achievable. Foreign investors would still have access to borrowed money that is difficult to track. People would still be able to borrow money through non-official routes (family and friends).<p>Annec data: We built several houses in the UK ourselves (paying contractors where required). Including the cost of land, our time and all other expenses, the houses were instantly worth 2x once built. In the 10 years or so they have existed, they are now worth 3-4x the original investment. It doesn't add up.