Rent Control in Stockholm
Here’s an interesting letter from “Stockholm” to Seattle:
I am writing to you because I heard that you are looking at rent control.
Seattle, you need to ask your citizens this: How would citizens like it if they walked into a rental agency and the agent told them to register and come back in 10 years?
I’m not joking. The image above is a scan of a booklet sent to a rental applicant by Stockholm City Council’s rental housing service. See those numbers on the map? That’s the waiting time for an apartment in years. Yes, years. Look at the inner city – people are waiting for 10-20 years to get a rental apartment, and around 7-8 years in my suburbs. (Red keys = new apartments, green keys = existing apartments).
Stockholm City Council now has an official housing queue, where 1 day waiting = 1 point. To get an apartment you need both money for the rent and enough points to be the first in line. Recently an apartment in inner Stockholm became available. In just 5 days, 2000 people had applied for the apartment. The person who got the apartment had been waiting in the official housing queue since 1989!
In addition to Soviet-level shortages, the letter writer discusses a number of other effects of rent controls in Stockholm including rental units converted to condominiums and a division of renters into original recipients who are guaranteed low rates and who thus never move and the newly arrived who have to sublet at higher rates or share crowded space. All of these, of course, are classic consequences of rent controls.
Addendum: More details on Sweden’s rent-setting system can be found here, statistics (in Swedish) on rental availability in Stockhom are here and a useful analysis of the Swedish housing crisis with more details on various policies (e.g. new construction is exempt for 15 years but there isn’t nearly enough) is here.
附录：欲了解有关瑞典的租金厘定体系的更多细节，请点击这里，有关斯德哥尔摩可租房屋的统计数据（瑞典语）请点击这里，一份关于瑞典住房危机的有用分析，其中含有有关诸多政策的细节（比如：新修建筑获免税已有15年，而建筑却仍供不应求【编注：此句意思不确定，exempt不知所指为何：exempt from what?】）请点击这里。
Jenkins wrote a comprehensive review of the literature on rent controls in 2009 that echoed what Navarro said in 1985 “the economics profession has reached a rare consensus: Rent control creates many more problems than it solves.”
Hat tip to Bjorn and Niclas who confirmed to me the situation in Stockholm and to Peter for the original link.