A rent control measure passed a state House committee dominated by Democrats this week because repeating failures by California and New York is their solution to address Colorado’s housing crunch.
By allowing cities and counties to pass rent control laws in a tight housing market, Democrats think it will stabilize the housing market for the poor and middle class by incentivizing the market to create more housing.
Because nothing boosts entrepreneurship more than legislation that signals people will lose money by investing in housing because their profits will be controlled by an unstable elected body of politicians. Very much like the same politicians who think mimicking California and New York laws is a good idea.
Rents are rising in Colorado because of the high demand for housing coupled with an inflationary economy, which Democrats are Hell-bent on inflating into a recession.
Price fixing does not encourage homebuilding or expanding the rental market. It creates ghettos.
Ted Leighty, CEO of the Colorado Association of Home Builders, called the bill “a false idol.”
“We need more supply. Period,” Leighty told the committee.
The Associated Press says the Repeal Prohibition Local Residential Rent Control faces an uphill battle as Gov. Polis is not completely on board with the measure.
PeakNation™ will recall Polis has designs on the 2024 presidential election, so he’s not feeling the socialist, authoritarian vibes these days and could likely veto the measure once it passes the full House and state Senate.
“Governor Polis is skeptical that rent control will create more housing stock, and locations with these policies often have the unintended consequences of higher rent,” his spokesperson Katherine Jones said in a statement.
Colorado Democrats are hearing a bill to make housing even more scarce and unaffordable. No city that had implemented rent control has had good results. Another #epicfail in the making. #copolitics #coleg pic.twitter.com/aDNvTaoJDV
— Richard Turnquist 🇺🇸 (@RichardDaleT) February 15, 2023