
Why rent control works - timr
http://www.sfbg.com/politics/2013/05/13/why-rent-control-works
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spikels
Author says "Actually, rents go up by the percentage of the inflation rate
that's due to housing" while attempting to explain why SF rent control limits
rent increases to 60% of CPI and not 100% of CPI as is always used.

LOL - That's not how inflation rate calculations work!

Suppose housing was 60% of the CPI index (it's actually around 32%) and it was
up 10% last year and everything else - the remaining 40% - was up only 5% then
overall CPI would be up 8% (=60% _10%+40_ 5%) and this SF rent increases would
be limited to 4.8% (=60%*8%). Note how 4.8% is lower than both the housing
inflation and other inflation. This is because this is the (obviously) wrong
way to use CPI.

The actual reason it is 60% of CPI is political and in Norah reflects a proper
accounting of inflation.

Too bad our loudest political voices can't get either the facts or math right
because both are required to solve our housing problems.

