By Pete Bosen

I AM A LONG TERM SANTA MONICA resident, and can remember the days before Costa-Hawkins well. There is talk of having a ballot initiative to repeal Costa Hawkins - which would return vacancy control to Santa Monica, and so cap the price of rents to new renters, often at very low levels - and over time inflation will send those capped rents lower and lower.

 (All of what follows is not about the usual rent control, but about the extreme form of rent control called “vacancy control.”) 

It is well known that capping the price of goods below market price always leads to inefficient use of those goods and the collapse of supply. Just look at the gas crisis of the 1970’s; where price caps turned a minor price adjustment into a disastrous loss of supply: (http://www.washingtontimes.com/news/200 6/may/15/20060515-122820-6110r/) . 

Apartments are no different...

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