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NEW IN PIRATE WIRES: The Los Angeles City Council has voted to cap rent increases below inflation for most units — essentially telling investors they can’t earn a return in the city.
The effects of this decision are clear: over time, the rent cap will choke off new development, leading to higher rents for everyone not in a legacy rent-controlled unit.
The only ones who benefit? Anyone renting long-term who doesn’t care about the condition of their apartment, and the emboldened DSA… which will only grow more attached to preventing rent hikes for legacy rent-controlled tenants.
@moseskagan breaks down the economics 👇

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