Reining in speculative finance would normally fall to federal regulators, as it did after 2008. But this time Washington is moving the other way, with bank regulators easing capital rules even as commercial real estate stress builds. With federal oversight in retreat, the tools sit closer to home, in city halls and statehouses. Rent regulation is one of them.
The same lending that puts a family at risk of losing their home also loads risk into the financial system. When rents are pushed past what people can afford, the damage shows up first in eviction notices, forced moves, and impossible household budgets. Later, it shows up as distressed loans, failing banks, and public rescues.
A housing market that depends on renters being squeezed, displaced, and replaced is fragile by design. Rent regulation is more than a response to the last crisis. It is one way to prevent the next one.
Stabilizing renters, it turns out, can also stabilize the economy.
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