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Comment by collyw | Hacker News Reader

Are places with rent control better or worse?

The only city I am aware of with rent control in Europe is Stockholm. Apparently finding a flat there is a nightmare. Where I live there is no rent control and its still a nightmare trying to find somewhere central to rent for a decent price.

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There is all kinds of rent control over all Europe. In Stockholm is a nightmare. I tell you, 20 years to get a flat. There are other forms of rent control, that affects more or less. The economist Juan Ramon Rallo studied this matter deeply and he states that the only solution is deregulate construction (more buildings, higher) and no rent control, so tenants can rent cheaply without so much requirements to get into a flat.

Playing the devils advocate, it's not 20 years to get a flat. It's 20 years to get a large, cheap, centrally located flat.

You can get a firsthand contract for spatious 2 room apartment in Märsta for 14k a month right now.

Yes, we're talking about big cities. People want to live near the center, but even at 14km is not matter of days. You need to wait.

Ok, its true, there is some sort of rent control where I live, the inflation can only go up by the same as inflation - for the duration of the contract. But then one the contract is up they can charge what the market will let them. Contracts were 5 years, went down to 3, and are now back up to 5.

At the end of our last 5 year contract the rent went up by around 45%. Bought a small place further out instead.

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