Take a rented house does often say, for a young, cutting that umbilical cord with his family, too often overly stringent. However, in a city like Rome achieve this means direct confrontation with the terrible law of supply and demand. " Impossible prices, scarcity, and garbled announcements vacation in black discourage many young people from taking much-needed step, only to be labeled as a "big baby".
However, these phenomena are not the cause of this unsatisfactory condition, but they represent only the effects of a series of market imperfections, due to a series of public interventions in the market that have been proven wrong and misleading.
will try in a short time to analyze a slew of possible causes of these imperfections, trying to be as concise and clear as possible.
The shortage of housing: Possible causes:
1. The rental market as a byproduct of the market for residential property.
The rental market is a formidable opponent in the housing market the property, which we refer for simplicity to use "non-productive". For the good "lease" is an inferior good to the good "properties", if only because it increases the incomes of these individuals will prefer to borrow or use savings to buy an available home. Widespread prosperity, despite some economic difficulties in the last 50 years has pushed housing demand to use non-productive to the stars.
addition, in periods when the cost of borrowing is low, as indeed has been for five years until two years ago, will be preferable for individuals to borrow to buy a home rather than rent, they will increase the demand for new homes non-productive use, removing the availability of market rents.
From here we can draw a basic concept of the infamous law of supply and demand:
scarcity = high prices
2. The result of a wrong tax.
Another problem to be put into account the problem of why there is rent seeking, in my opinion, in the mistaken system of taxation on property, on rents, which creates a disincentive to rent for the owner, creating further shortages of housing for for that purpose.
In fact, a homeowner who wanted to rent vacant, we assume, for now, who wants to pay all taxes and put his tenant in good standing, must pay at year-end, a double tax: the ICI only because of el'IRPEF own house because the rent is for him an income. As far as paying taxes is a duty and moral obligation of all citizens, the tax regime unfavorable results in two serious consequences: the first is that the owner will prefer to take the vacant house, the other is an incentive to rent to black for not paying income tax on the rent.
3. The big landowners.
The landlords of buildings come at ease in this general discussion about the shortage of apartments to productive use. In fact they enjoy a strong bargaining power in this area and often force, implicit and tacit agreements with the prices upward to make more money. It must be said that they often work in black or through agencies that are able to exploit tax warmer, further taking advantage of the situation.
Siamo arrivati ora, seppur con qualche ipotesi, a delineare alcune delle cause del problema degli affitti. Tuttavia siamo solo agli albori della nostra indagine, in quanto non abbiamo ancora delineato l’intervento dello Stato in tutto questo. Intervento che non ha fatto altro che acuire il problema, portandoci alla situazione che siamo costretti ad affrontare in questi giorni.
L’intervento dello Stato: how not to do it.
1° intervento: equo canone e similari.
Di leggi che fissano un prezzo calmierato in materia se ne sono viste molte, nell’arco degli anni. Il problema nel fissare un prezzo, o una quantità, in un mercato è quello di fissarlo bene. In Here we have tried to set a maximum price below what was the market price. A lower price to which it is prevented from rising creates a mismatch between supply and demand. Now we have to recall another basic concept of the infamous law of supply and demand:
lowest prices increased demand balance = balance =
lowest prices offered less
this persistent gap between supply and demand creates not a few failures.
The first inefficiency is to increase the opportunities of a parallel black market, where all those who desperately need a house to rent must yield to the demands del proprietario di un contratto più costoso e in nero.
Altra inefficienza consiste in quella di non permettere più ai prezzi da fungere da indicatori economici; non riflettendo più la scarsità della risorsa, non sempre chi beneficia del prezzo più basso, semmai ce ne fosse effettivamente uno, è anche chi ha più bisogno dell’appartamento.
Infine, la scarsità persistente rende più difficile trovare un appartamento, on conseguente spreco di tempo.
2° intervento: i vincoli contrattuali.
In anni recenti è stata approvata una legge (legge 431/1998) che pone vincoli contrattuali a proprietari e futuri inquilini, imponendo una durata minima del contratto 4 years, which are automatically renewed, unless otherwise required by law, for another 4 years. So when we talk about 8 years, while trying to bring stability to the relationship, often you get to create uncertainty about possible friction between tenant and landlord. A legal traffic so heavy is indeed a disincentive to rent, then in order to avoid a possible forced cohabitation with undesirable tenants. It creates uncertainty, uncertainty is always accompanied by an unwillingness to enter the market to increase supply. If we add that, even in the last budget, it included a provision to block the evictions, then you will understand that the uncertainty increases, worsening the problem.
So far we have seen the possible causes of the current situation, the solution is neither simple nor immediate. In fact, only a long-term policy intervention, consisting in the construction of houses "popular" in order to offer a public holiday in administered prices can actually reduce the condition of scarcity on the market.
In the short term we should free the market from the bureaucratic burden is a disincentive to the provision of housing to rent, together with stricter controls against landlords who rent to black and too often abuse their bargaining position stronger. Furthermore, instead moderation by intervening with a price ceiling, you should speak with a tax credit on income that would have the same effect (to ensure a lower price), but did not constitute grounds for market distortions.
Paul Petrone.
However, these phenomena are not the cause of this unsatisfactory condition, but they represent only the effects of a series of market imperfections, due to a series of public interventions in the market that have been proven wrong and misleading.
will try in a short time to analyze a slew of possible causes of these imperfections, trying to be as concise and clear as possible.
The shortage of housing: Possible causes:
1. The rental market as a byproduct of the market for residential property.
The rental market is a formidable opponent in the housing market the property, which we refer for simplicity to use "non-productive". For the good "lease" is an inferior good to the good "properties", if only because it increases the incomes of these individuals will prefer to borrow or use savings to buy an available home. Widespread prosperity, despite some economic difficulties in the last 50 years has pushed housing demand to use non-productive to the stars.
addition, in periods when the cost of borrowing is low, as indeed has been for five years until two years ago, will be preferable for individuals to borrow to buy a home rather than rent, they will increase the demand for new homes non-productive use, removing the availability of market rents.
From here we can draw a basic concept of the infamous law of supply and demand:
scarcity = high prices
2. The result of a wrong tax.
Another problem to be put into account the problem of why there is rent seeking, in my opinion, in the mistaken system of taxation on property, on rents, which creates a disincentive to rent for the owner, creating further shortages of housing for for that purpose.
In fact, a homeowner who wanted to rent vacant, we assume, for now, who wants to pay all taxes and put his tenant in good standing, must pay at year-end, a double tax: the ICI only because of el'IRPEF own house because the rent is for him an income. As far as paying taxes is a duty and moral obligation of all citizens, the tax regime unfavorable results in two serious consequences: the first is that the owner will prefer to take the vacant house, the other is an incentive to rent to black for not paying income tax on the rent.
3. The big landowners.
The landlords of buildings come at ease in this general discussion about the shortage of apartments to productive use. In fact they enjoy a strong bargaining power in this area and often force, implicit and tacit agreements with the prices upward to make more money. It must be said that they often work in black or through agencies that are able to exploit tax warmer, further taking advantage of the situation.
Siamo arrivati ora, seppur con qualche ipotesi, a delineare alcune delle cause del problema degli affitti. Tuttavia siamo solo agli albori della nostra indagine, in quanto non abbiamo ancora delineato l’intervento dello Stato in tutto questo. Intervento che non ha fatto altro che acuire il problema, portandoci alla situazione che siamo costretti ad affrontare in questi giorni.
L’intervento dello Stato: how not to do it.
1° intervento: equo canone e similari.
Di leggi che fissano un prezzo calmierato in materia se ne sono viste molte, nell’arco degli anni. Il problema nel fissare un prezzo, o una quantità, in un mercato è quello di fissarlo bene. In Here we have tried to set a maximum price below what was the market price. A lower price to which it is prevented from rising creates a mismatch between supply and demand. Now we have to recall another basic concept of the infamous law of supply and demand:
lowest prices increased demand balance = balance =
lowest prices offered less
this persistent gap between supply and demand creates not a few failures.
The first inefficiency is to increase the opportunities of a parallel black market, where all those who desperately need a house to rent must yield to the demands del proprietario di un contratto più costoso e in nero.
Altra inefficienza consiste in quella di non permettere più ai prezzi da fungere da indicatori economici; non riflettendo più la scarsità della risorsa, non sempre chi beneficia del prezzo più basso, semmai ce ne fosse effettivamente uno, è anche chi ha più bisogno dell’appartamento.
Infine, la scarsità persistente rende più difficile trovare un appartamento, on conseguente spreco di tempo.
2° intervento: i vincoli contrattuali.
In anni recenti è stata approvata una legge (legge 431/1998) che pone vincoli contrattuali a proprietari e futuri inquilini, imponendo una durata minima del contratto 4 years, which are automatically renewed, unless otherwise required by law, for another 4 years. So when we talk about 8 years, while trying to bring stability to the relationship, often you get to create uncertainty about possible friction between tenant and landlord. A legal traffic so heavy is indeed a disincentive to rent, then in order to avoid a possible forced cohabitation with undesirable tenants. It creates uncertainty, uncertainty is always accompanied by an unwillingness to enter the market to increase supply. If we add that, even in the last budget, it included a provision to block the evictions, then you will understand that the uncertainty increases, worsening the problem.
So far we have seen the possible causes of the current situation, the solution is neither simple nor immediate. In fact, only a long-term policy intervention, consisting in the construction of houses "popular" in order to offer a public holiday in administered prices can actually reduce the condition of scarcity on the market.
In the short term we should free the market from the bureaucratic burden is a disincentive to the provision of housing to rent, together with stricter controls against landlords who rent to black and too often abuse their bargaining position stronger. Furthermore, instead moderation by intervening with a price ceiling, you should speak with a tax credit on income that would have the same effect (to ensure a lower price), but did not constitute grounds for market distortions.
Paul Petrone.
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