Category: Current Affairs
Rent Control Creates Ghost Apartments
Adam Lehodey writing at City Journal:
In New York City, making a profit on real estate has become increasingly difficult. Rent-stabilization laws built on the mantra that “housing is a human right,” a dysfunctional housing court, and myriad other interventions have driven thousands of units off the market, giving rise to the phenomenon of New York’s “ghost apartments.”
The city now has nearly 50,000 empty units, absent from the market either because their operating costs exceed legal rents or because they require considerable renovations.
…Take a building on East 6th Street as an example. A mere five-minute walk from Tompkins Square, the building is a convenient home for students and young professionals.
One-bedroom units in the building average $3,500— except two of them, subject to the city’s rent-stabilization laws, which hold rents below $900 per month.
As a result, both units have been allowed to fall into disrepair, because the cost of restoring them to habitability is greater than what they’d generate in rent.
…Much of the predicament at the East 6th Street building and the apartments on Valentine Avenue can be traced back to one piece of legislation: the 2019 Housing Stability and Tenant Protection Act (HSTPA). Passed by a Democratic majority in the state legislature, HSTPA eliminated landlords’ abilities to raise rents after units were vacated, or when they exceeded $2,775 per month. In doing so, it also eliminated their ability to make improvements profitably and reset the stabilized rent.
Recall from the recent review by Kholodilin that “the published studies are almost unanimous with respect to the impact of rent control on the quality of housing….[namely] that rent control leads to a deterioration in the quality of those dwellings subject to regulations.”
Markets in everything?
If you don’t yet have a REAL ID, you can continue to fly, but it’s going to cost you. Beginning Feb. 1, 2026, the Transportation Security Administration (TSA) will start collecting a $45 fee from travelers using non-compliant forms of identification at airport security checkpoints.
The agency previously proposed a fee of $18 to cover the administrative and IT costs of ID verification for those traveling without a REAL ID or passport but increased the total to $45 in an announcement released earlier this month.
Here is the full story, via the excellent Samir Varma.
China fertility facts of the day
A Chinese billionaire was seeking parental rights to at least four unborn children, and the court’s additional research showed that he had already fathered or was in the process of fathering at least eight more—all through surrogates.
When Pellman called Xu Bo in for a confidential hearing in the summer of 2023, he never entered the courtroom, according to people who attended the hearing. The maker of fantasy videogames lived in China and appeared via video, speaking through an interpreter. He said he hoped to have 20 or so U.S.-born children through surrogacy—boys, because they’re superior to girls—to one day take over his business.
Several of his kids were being raised by nannies in nearby Irvine as they awaited paperwork to travel to China. He hadn’t yet met them, he told the judge, because work had been busy…
Some Chinese parents, inspired by Elon Musk’s 14 known children, pay millions in surrogacy fees to hire women in the U.S. to help them build families of jaw-dropping size. Xu calls himself “China’s first father” and is known in China as a vocal critic of feminism. On social media, his company said he has more than 100 children born through surrogacy in the U.S.
Another wealthy Chinese executive, Wang Huiwu, hired U.S. models and others as egg donors to have 10 girls, with the aim of one day marrying them off to powerful men, according to people close to the executive’s education company.
…“Elon Musk is becoming a role model now,” said Zhang. An increasing number of “crazy rich” clients are commissioning dozens, or even hundreds, of U.S.-born babies with the goal of “forging an unstoppable family dynasty,” he said.
Here is the full WSJ article.
Addendum: In the comments Gilligan writes: “On the positive side, we will be able to tax the heirs’ world wide income for the rest of their natural lives.”
My Conversation with the excellent Gaurav Kapadia
Here is the audio, video, and transcript. Here is the episode summary:
Gaurav Kapadia has deliberately avoided publicity throughout his career in investing, which makes this conversation a rare window into how he thinks. He now runs XN, a firm built around concentrated bets on a small number of companies with long holding periods. However, his education in judgment began much earlier, in a two-family house in Flushing that his parents converted into a four-family house. It was there where a young Gaurav served as de facto landlord, collecting rent and negotiating late payments at age 10. That grounding now expresses itself across an unusual range of domains: Tyler invited him on the show not just as an investor, but as someone with a rare ability to judge quality in cities, talent, art, and more with equal fluency.
Tyler and Gaurav discuss how Queens has thrived without new infrastructure, what he’d change as “dictator” of Flushing, whether Robert Moses should rise or fall in status, who’s the most underrated NYC mayor, what’s needed to attract better mayoral candidates, the weirdest place in NYC, why he initially turned down opportunities in investment banking for consulting, bonding with Rishi Sunak over railroads, XN’s investment philosophy, maintaining founder energy in investment firms and how he hires to prevent complacency, AI’s impact on investing, the differences between New York and London finance, the most common fundraising mistake art museums make, why he collects only American artists within 20 years of his own age, what makes Kara Walker and Rashid Johnson and Salman Toor special, whether buying art makes you a better investor, his new magazine Totei celebrating craft and craftsmanship, and much more.
Excerpt:
COWEN: Now, I don’t intend this as commentary on any particular individual, but what is it that could be done to attract a higher quality of candidate for being mayor of New York? It’s a super important job. It’s one of the world’s greatest cities, arguably the greatest. Why isn’t there more talent running after it?
KAPADIA: It is something that I’ve thought about a great deal. I think there’s a bunch of little things that accumulate, but the main thing that happens in New York City is, people automatically assume they can’t win because it’s such a big and great city. Actually, the last few presidential elections and also the current mayoral election have taught people that anyone could win. I think that, in and of itself, is going to draw more candidates as we go forward.
What happened as an example, this time, people just assumed that one candidate had the race locked up, so a lot of good candidates, even that I know, decided not even to run. It turns out that that ended up not being the case at all. Now that people put that into their mental model, the new Bayesian analysis of that would be, “Oh, more people should run.”
The second thing: New York has a bunch of very peculiar dynamics. It’s an off-year election, and the primaries are at very awkward times. I believe there’s a history of why the primary shifted to basically the third week of June, in which there’s a very low turnout. The third week of June in New York City, when the private schools are out and an off-year election. You’re able to win the Democratic nomination and therefore the mayoral election with tens of thousands of votes in a city this big. That is absolutely insane.
A couple of things that I would probably do would be to make the primary more normal, change the election timing to make it on-cycle, even number of years. You’d have to figure out how to do that. Potentially have an open primary as well.
COWEN: If we apply the Gaurav Kapadia judgment algorithm to mayoral candidates, what’s the non-obvious quality you’re looking for?
KAPADIA: Optimism.
COWEN: Optimism.
KAPADIA: Optimism.
COWEN: Is it scarce?
KAPADIA: Extraordinarily scarce. I think there’s much more doomerism everywhere than optimism. At the end of the day, people are attracted to optimism. If you think about the machinery of the city and the state, having a clear plan — of course, you need all the basics. You need to be able to govern. It’s a very complicated city. There’re many constituents.
But I think beyond that, you have to have the ability to inspire. For some reason, almost all of the candidates, over the last couple of cycles, have really not had that — with the exception of probably one — the ability to inspire. I think that is the most underrated quality that one will need.
COWEN: I have my own answer to this question, but I’m curious to see what you say. What is, for you, the weirdest part of New York City that you know of that doesn’t really feel like it belongs to New York City at all?
Definitely recommended.
Australia should not ban under-16s from internet sites
YouTube in particular, and sometimes X, are among the very best ways to learn about the world. To the extent that the law is effectively enforced, targeting YouTube will have a terrible effect on youth science, and the ability of young scientists and founders to get their projects off the ground will take a huge and possibly fatal hit. If you are only allowed to learn from the internet at age 16, you are probably not ready for marvelous achievements at age 18 or perhaps not even at 20. The country may become more mediocre.
The more serious concern is that this represents a major expansion of government control over tech services and also speech. Over time the government has to decide which are the approved tech companies and services and which are not. That becomes a politicized decision, as any chosen lines will be arbitrary, especially as online services evolve in their functionality. For instance, if excess video usage is what is problematic, it is possible for videos to be embedded more seamlessly into some future version of WhatsApp, an exempt service. Or Australian youth, even under the new law, will be able to access video on a laptop, simply by viewing it and not signing into their accounts…
I predict that either this law stops being effectively enforced, or the controls on companies and users have to become much, much tighter and more oppressive. In a large poll of Australian 9 to 16-year-olds, only 6 percent of them thought the new ban was going to work.
That is true for yet another reason. With gaming and messaging exempt from the ban, we can expect old-style “social media” to move into those areas. It already was the case that Fortnite and other gaming services served as social media networks, and that trend will be accelerated. Discord, for instance, is exempt from the ban, a glaring hole, and in a fast-changing market there probably will be some significant loopholes most of the time. For the ban to continue to work, it will have to spread. It is hard to think of an area of internet services that could not, in principle, serve social media–like functions, or produce the harms being attributed to online life. Regulation of artificial intelligence services is perhaps the next logical albeit misguided move here.
Who is in charge of the family anyway? If I have decided that my 15-year-old should be free to follow Magnus Carlsen on X and YouTube, should we have the boot of the state tell me this is forbidden? This is a big move in the direction of what Socrates advocated in The Republic, namely that the state takes priority over the family in deciding which stories can be told to the youth.
Over time, I expect this ban, again assuming it is kept and enforced, to become one of the biggest free speech restrictions on the internet. It is the incentive of government agencies to boost their budgets, spread their mandates, and enforce their dictates. What starts with a nation’s youth rarely ends there.
You might think that Australia’s regulatory guardians can be trusted to uphold free speech ideals, but has that been the case to date? Under Australian law, it is permissible to restrict free speech for reasons of public order, national security, and protection from harm. That includes limits on “hate speech,” prompting Elon Musk to exaggerate and call the country fascist. Nonetheless the country does not have anything comparable to America’s First Amendment free speech protections.
So why should we empower Australian regulators and restrict free speech further?
It is very defensible to worry that your kid is on his or her phone too much. Furthermore, school bans or limits on smartphone usage are likely to bring some measurable but small gains.
But if you think a massive expansion of state authority over online content is the answer, you ought to know that the associated gains from that decision will at best be modest. You will not be saving civilization or our youth; rather you will be joining the ever-growing parade against free speech.
Recommended, and in this recent piece Ben Yeoh surveys the research-based literature on social media and teen harm.
What has gone wrong with tourism to Las Vegas?
Agitators in the city have attempted to document the deterioration by posting ominous images of barren casinos, conjuring the perception of a place hollowed out by economic armageddon. The reality is more nuanced, but it is true that practically every conceivable indicator tracking tourism to Las Vegas is flashing warning signs. Hotel occupancy has cratered. Rooms were only 66.7 percent full in July, down by 16.8 percent from the previous year. The number of travelers passing through Harry Reid International Airport also declined by 4.5 percent in 2025 during an ongoing ebb of foreign tourists, for familiar reasons. Canadians, historically one of the city’s most reliable sources of degenerates, have effectively vanished. Ticket sales for Air Canada jets flying to Las Vegas have slipped by 33 percent, while the Edmonton-based low-cost carrier Flair has reported a 62 percent drop-off.
Here is the full story, which shows it is by no means an exclusively Canadian phenomenon. Overall, I am happy to see a shift away from gambling, drinking, and “shows for wealthy old people”?
The EU production function
The central puzzle of the EU is its extraordinary productivity. Grand coalitions, like the government recently formed in Germany, typically produce paralysis. The EU’s governing coalition is even grander, spanning the center-right EPP, the Socialists, the Liberals, and often the Greens, yet between 2019 and 2024, the EU passed around 13,000 acts, about seven per day. The U.S. Congress, over the same period, produced roughly 3,500 pieces of legislation and 2,000 resolutions.1
Not only is the coalition broad, but encompasses huge national and regional diversity. In Brussels, the Parliament has 705 members from roughly 200 national parties. The Council represents 27 sovereign governments with conflicting interests. A law faces a double hurdle, where a qualified majority of member states and of members of parliament must support it. The system should produce gridlock, more still than the paralysis commonly associated with the American federal government. Yet it works fast and produces a lot, both good and bad. The reason lies in the incentives: every actor in the system is rewarded for producing legislation, and not for exercising their vetoes…
Formally, the EU is a multi-actor system with many veto points (Commission, Parliament, Council, national governments, etc.), which should require broad agreement and hence slow decision making. In practice, consensus is manufactured in advance rather than reached through deliberation.
By the time any proposal comes up for an official vote, most alternatives have been eliminated behind closed doors. A small team of rapporteurs agrees among themselves; the committee endorses their bargain; the plenary, in turn, ratifies the committee deal; and the Council Presidency, pressed for time, accepts the compromise (with both Council and Parliament influenced along the way by the Commission’s mediation and drafting). Each actor can thus claim a victory and no one’s incentive is to apply the brakes.
That is from an excellent piece by Luis Garicano. What would Buchanan and Tullock say?
Welcome to the Crazy CAFE
To let Americans buy smaller cars, Trump had to weaken fuel-efficiency standards. Does that sound crazy? Small cars, of course, have much higher fuel efficiency. Yet this is exactly how the Corporate Average Fuel Economy (CAFE) standards work.
Since 2011, fuel-economy targets scale with a vehicle’s “footprint” (wheelbase × track width). Big vehicles get lenient targets; small vehicles face demanding ones. A microcar that gets 40 MPG might be judged against a target of 50-60 MPG, while a full-size truck doing 20 MPG can satisfy a 22 MPG requirement.. The small car is clearly more efficient, yet it fails the rule that the truck passes.
The policy was meant to be fair to producers of large vehicles, but it rewards bloat. Make a car bigger and compliance gets easier. Add crash standards built around heavier vehicles and it’s obvious why the US market produces crossovers and trucks while smaller and much less expensive city-cars, familiar in Europe and Asia, never show up. At a press conference rolling back CAFE standards, Trump noted he’d seen small “kei” cars on his Asia trip—”very small, really cute”—and directed the Transportation Secretary to clear regulatory barriers so they could be built and sold in America.
Trump’s rollback—cutting the projected 2031 fleet average from roughly 50.4 MPG to 34.5 MPG—relaxes the math enough that microcars could comply again. Only Kafka would appreciate a fuel-economy system that makes small fuel-efficient cars hard to sell and giant trucks easy. Yet the looser rules remove a barrier to greener vehicles while also handing a windfall to big truck makers. A little less Kafka, a little more Tullock.
Abu Dhabi fact of the day
International Holding Company has been growing:
IHC’s $240bn market capitalisation makes it by far the biggest constituent of the Abu Dhabi stock exchange, taking up 41.5 per cent of the FTSE ADX General Index — a figure that rises still further when listed subsidiaries such as Alpha Dhabi and 2PointZero are included.
First Abu Dhabi Bank, the country’s largest lender and runner-up at a 10 per cent weighting, is also chaired by Sheikh Tahnoon. Because IHC is ultimately controlled by Sheikh Tahnoon, who is also the UAE’s national security adviser and chairs two of Abu Dhabi’s sovereign wealth funds, academics classify it as a “state-related entity”.
IHC in turn consists of about 1500 firms, though consolidation is promised. Here is the full FT article.
South Korea fact of the day
100 South Koreans will have an estimated 15 grandchildren
Barring a change in current levels. Here is the link.
My Conversation with the excellent Dan Wang
Here is the audio, video, and transcript. Here is part of the episode summary:
Tyler and Dan debate whether American infrastructure is actually broken or just differently optimized, why health care spending should reach 35% of GDP, how lawyerly influences shaped East Asian development differently than China, China’s lack of a liberal tradition and why it won’t democratize like South Korea or Taiwan did, its economic dysfunction despite its manufacturing superstars, Chinese pragmatism and bureaucratic incentives, a 10-day itinerary for Yunnan, James C. Scott’s work on Zomia, whether Beijing or Shanghai is the better city, Liu Cixin and why volume one of The Three-Body Problem is the best, why contemporary Chinese music and film have declined under Xi, Chinese marriage markets and what it’s like to be elderly in China, the Dan Wang production function, why Stendhal is his favorite novelist and Rossini’s Comte Ory moves him, what Dan wants to learn next, whether LLMs will make Tyler’s hyper-specific podcast questions obsolete, what flavor of drama their conversation turned out to be, and more.
Excerpt:
COWEN: When will Chinese suburbs be really attractive?
WANG: What are Chinese suburbs? You use this term, Tyler, and I’m not sure what exactly they mean.
COWEN: You have a yard and a dog and a car, right?
WANG: Yes.
COWEN: You control your school district with the other parents. That’s a suburb.
WANG: How about never? I’m not expecting that China will have American-style suburbs anytime soon, in part because of the social engineering projects that are pretty extensive in China. I think there is a sense in which Chinese cities are not especially dense. Indian cities are much, much more dense. I think that Chinese cities, the streets are not necessarily terribly full of people all the time. They just sprawl quite extensively.
They sprawl in ways that I think the edges of the city still look somewhat like the center of the city, which there’s too many high-rises. There’s probably fewer parks. There’s probably fewer restaurants. Almost nobody has a yard and a dog in their home. That’s in part because the Communist Party has organized most people to live in apartment compounds in which it is much easier to control them.
We saw this really extensively in the pandemic, in which people were unable to leave their Shanghai apartment compounds for anything other than getting their noses and mouths swabbed. I write a little bit about how, if you take the rail outside of major cities like Beijing and Shanghai, you hit farmland really, really quickly. That is in part because the Communist Party assesses governors as well as mayors on their degree of food self-sufficiency.
Cities like Shanghai and Beijing have to produce a lot of their own crops, both grains as well as vegetables, as well as fruits, as well as livestock, within a certain radius so that in case there’s ever a major devastating war, they don’t have to rely on strawberries from Mexico or strawberries from Cambodia, or Thailand. There’s a lot of farmland allocated outside of major cities. I think that will prevent suburban sprawl. You can’t control people if they all have a yard as well as a dog. I think the Communist Party will not allow it.
COWEN: Whether the variable of engineers matters, I went and I looked at the history of other East Asian economies, which have done very well in manufacturing, built out generally excellent infrastructure. None of these problems with the Second Avenue line in New York. Taiwan, like the presidents, at least if we believe GPT-5, three of them were lawyers and none of them were engineers. South Korea, you have actually some economists, a lot of bureaucrats.
WANG: Wow. Imagine that. Economists in charge, Tyler.
COWEN: I wouldn’t think it could work. A few lawyers, one engineer. Singapore, Lee Kuan Yew, he’s a lawyer. He thinks in a very lawyerly manner. Singapore has arguably done the best of all those countries. Much richer than China, inspired China. Why should I think engineers rather than just East Asia, and a bunch of other accompanying facts about these places are what matter?
WANG: Japan, a lot of lawyers in the top leadership. What exactly was the leadership of Hong Kong? A bunch of British civil servants.
COWEN: Some of whom are probably lawyers or legal-type minds, right? Not in general engineers.
WANG: PPE grads. I think that we can understand the engineering variable mostly because of how much more China has done relative to Japan and South Korea and Taiwan.
COWEN: It’s much, much poorer. Per capita manufacturing output is gone much better in these other countries.
And:
WANG: Tyler, what does it say about us that you and I have generally a lot of similar interests in terms of, let’s call it books, music, all sorts of things, but when it comes to particular categories of things, we oppose each other diametrically. I much prefer Anna Karenina to War and Peace. I prefer Buddenbrooks to Magic Mountain. Here again, you oppose me. What’s the deal?
COWEN: I don’t think the differences are that big. For instance, if we ask ourselves, what’s the relative ranking of Chengdu plus Chongqing compared to the rest of the world? We’re 98.5% in agreement compared to almost anyone else. When you get to the micro level, the so-called narcissism of petty differences, obviously, you’re born in China. I grew up in New Jersey. It’s going to shape our perspectives.
Anything in China, you have been there in a much more full-time way, and you speak and read Chinese, and none of that applies to me. I’m popping in and out as a tourist. Then, I think the differences make much more sense. It’s possible I would prefer to live in Shanghai for essentially the reasons you mentioned. If I’m somewhere for a week, I’m definitely going to pick Beijing. I’ll go around to the galleries. The things that are terrible about the city just don’t bother me that much, because I know I’ll be gone.
WANG: 98.5% agreement. I’ll take that, Tyler. It’s you and me against the rest of the world, but then we’ll save our best disagreements for each other.
COWEN: Let’s see if you can pass an intellectual Turing test. Why is it that I think Yunnan is the single best place in the world to visit? Just flat out the best if you had to pick one region. Not why you think it is, but why I think it is.
Strongly recommended, Dan and I had so much fun we kept going for about an hour and forty minutes. And of course you should buy and read Dan’s bestselling book Breakneck: China’s Quest to Engineer the Future.
The MR Podcast: Debt!
On The Marginal Revolution Podcast this week, Tyler and I discuss the US debt. This is our final podcast of the year. Here’s one bit:
TABARROK: I do agree that it is puzzling that the interest rate on bonds is so low. Hanno Lustig and his co-authors have an interesting paper on this. They point out that not only is it the case that we have all of this debt with no plans to pay it, as far as we can tell right now, but the debt is not a very good asset in the sense that when will the debt be paid? If it is going to be paid, it’s going to be paid when the times are good. That means that you’re being paid when GDP is higher and the marginal utility money is low.
When is the debt not paid? When does it get bigger? It means when the economy is doing poorly. The debt as an asset has the opposite kind of structure than you would want. It’s not like gold, which arguably goes down in good times and goes up in bad times. You get some nice covariance to even out your portfolio. The debt as an asset is positively correlated with good times, and that’s bad. You should expect the interest rates to be much, much higher than they actually are.
COWEN: The easy out there is just to say it’s always going to be paid. Let me give you a way of reconceptualizing the problem. The Hanno Lustig paper, which is called “US Public Debt Valuation Puzzle,” like a lot of work on debt, it focuses on flows. There’s the rate of interest, there’s government spending. If you look at stocks, look at the stock of wealth in the United States. A common estimate from the past was wealth is six to eight times higher than GDP. That’s a little misleading. How do you value all the wealth? How liquid is it?
Still, we all know there’s a lot more wealth than GDP. If your economy stays at peace, if anything, that ratio rises. You build things, they’re pretty durable. None of it is destroyed by bombs. We’re just headed to having more and more wealth. If you take, say, 100% debt-to-GDP ratio, and you think wealth is six to eight times higher, what’s our debt-to-wealth ratio? Well, it’s going to depend what kind of wealth, how liquid, blah, blah, blah. Let’s say it’s like 20%. Let’s say you had a debt ratio of 20% to your wealth at some point in the history of your mortgage. I bet you did. You weren’t worried. Why should the US be worried?
TABARROK: The US is a much longer-lived entity, presumably, than I am.
COWEN: That’s right. You could have 200% debt-to-GDP ratio. In terms of your debt-to-wealth ratio, again, it’s somewhat arbitrary, but say it’s 40% to 50% that might be on the high side. It’s not pleasant, but I’ve been in that situation with mortgages.
Here’s the episode. Subscribe now to take a small step toward a much better world: Apple Podcasts | Spotify | YouTube.
Pharma supply is elastic
The crux of the problem is that the IRA imposes price caps that shorten the effective life of a patent and applies those price controls even to later-approved uses. Thirteen years after FDA approval, biologics, which are typically infused or injected, become subject to price controls. For small-molecule drugs, typically pills or tablets, the window is only nine years. The clock starts at a drug’s first approval, leaving a follow-on or alternative use, approved years later, an insufficient period to make up the cost of research.
Two weeks ago, a study I conducted with colleagues at the University of Chicago appeared in Health Affairs. It reveals how much these provisions harm cancer research. In reviewing every Food and Drug Administration-approved cancer drug between 2000 and 2024, we found a large part of innovation in cancer treatment takes place after a therapy is first approved. About 42% of the 184 cancer therapies that were initially approved during that period had follow-on approvals—involving new uses or “indications” for an existing drug—such as treating additional cancer types or being used earlier in the disease, when treatment outcomes tend to be better.
This cumulative progress through follow-on discoveries is a big driver of new cancer treatments, the largest drug class making up about 35% of the overall FDA pipeline. Cancer drugs are generally first tested in patients with late-stage disease, after which the drug is studied for use in earlier stages of that cancer and for new uses, including treating other cancers. Our study found that 60% of follow-on drugs treated earlier stages than the initial drugs. This is important because treating earlier stages is often more successful than when a cancer has spread more.
But that cumulative progress depends on incentives for sustained research well after the first FDA approval—often years of additional trials and investments. And those incentives were killed by the IRA.
The Dells add to Trump Accounts
I wrote that Trump Accounts Are A Big Deal. These accounts give U.S. citizen’s born between January 1, 2025, and December 31, 2028, $1000 invested in a low-cost, diversified U.S. stock index fund. Well, the accounts just got bigger. Michael and Susan Dell are donating $6.25 billion to seed accounts with $250 for children born before Jan. 2025, up to ten years of age:
The Dells have committed to seed Trump accounts with $250 for children who are 10 or under who were born before Jan. 1, 2025. According to Invest America, the pledged funds will cover 25 million children age 10 and under in ZIP codes with a median income of $150,000 or less.
“We want to help the children that weren’t part of the government program,” Dell said.
The People’s Republic of Santa Monica
Here’s a video from real estate investor and youtuber Graham Stephan. He’s explaining (starting at 7:23) why he is selling a home in Santa Monica instead of renting it out–it’s the rent control laws, of course. The laws are strongly biased against landlords. Perhaps landlords should be a protected class.
Everything he says about the law, by the way, is accurate. I was initially skeptical (as was Google Gemini) that homes had to be rented unfurnished. Why would that stupidity be a law? But no, it’s accurate. Apparently, the idea is to make it more difficult to rent to temporary residents.
To preserve rental housing for permanent residents, all rental units must be rented unfurnished for an initial term of not less than one year and only to natural persons intending to use the unit as their primary residence.
Here’s Google Gemini summarizing, once I corrected it on the unfurnished home law.
The speaker’s understanding of the Santa Monica Rent Control and Just Cause laws is highly accurate in almost all respects:
Subject to Rent Control (7:50): Accurate. A non-primary residence built before 1979 is typically subject to the law.
Indefinite Tenancy (8:50): Accurate. Tenants gain “permanent right” to occupancy as eviction is limited to specific “just causes.”
Rent Increase Limit ($60/AGI) (8:13): Accurate. The annual rent increase is capped by a fixed, low dollar amount (the AGI), which closely aligns with the speaker’s figure.
No Eviction to Sell (8:57): Accurate. Selling the property is not a “just cause” for eviction.
Owner Move-In (OMI) Requirements (9:14):Accurate. Eviction for OMI requires paying substantial relocation fees, re-offering the unit if re-rented within two years, and prohibits eviction during the school year.
Furnished Home Prohibition (9:56):Accurate. Santa Monica requires rental units to be initially rented unfurnished to permanent residents.
Hat tip: Naveen Nvn who also says this video is worth watching.