It is incredibly harmful for muncipalities to create a too big surplus of housing. Large swaths of empty houses mean crime, povertyand desolation.
The core problem here is the disproportionate power that gets even worse with the wealth concentration.
For the landlords it is ultimately about money. For the tenant it is about his very livelihood and secure private protected place.
A landlord of a single house is interested in forming a long term cooperative relationship with his tenant, which mitigates some of the power imbalance. But a company thats sole interest is maximizing profit will abuse this power imbalance, especially in poorly regulated markets.
The answer is not to create more 90s Detroits, but to regulate the market and keep the worst actors out.
It is incredibly harmful for muncipalities to create a too big surplus of housing. Large swaths of empty houses mean crime, povertyand desolation.
The core problem here is the disproportionate power that gets even worse with the wealth concentration.
For the landlords it is ultimately about money. For the tenant it is about his very livelihood and secure private protected place.
A landlord of a single house is interested in forming a long term cooperative relationship with his tenant, which mitigates some of the power imbalance. But a company thats sole interest is maximizing profit will abuse this power imbalance, especially in poorly regulated markets.
The answer is not to create more 90s Detroits, but to regulate the market and keep the worst actors out.