CRI Focus Areas

Rent Control Proposed for Delaware


Senate Bill 205 proposes to confine rent increases to homeowners in manufactured home communities to no more than the increase in the Consumer Price Index for the preceding year. Based upon years of research and experience it is clear what this Bill will achieve. Current owners of manufactured home communities (landlords) in Delaware will begin to save money by cutting back on maintenance costs and other services. They will begin to modify rental contracts to include off the book payments. This is possible because of the increase in demand for a home site where the rent is capped by inflation. A black market for home sites will spring up between current tenants and potential tenants. The black market price will reflect the true market price. Potential developers of manufactured home communities will bypass Delaware. A shortage of manufactured home communities will evolve in Delaware over time. In-migration of retirees to coastal Sussex County will be particularly constrained. Personally, I love Twizzlers. Could the legislature please cap the price of Twizzlers to annual inflation (and also stop the manufacturing from reducing the length and thickness of future Twizzlers)? Dr. John E. Stapleford, Director Center for Economic Policy and Analysis


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