In your opinion, do the benefits of rent control outweigh the costs?

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In your opinion, do the benefits of rent control outweigh the costs?

Nov 9th, 2015

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Benefits of rent control outweigh the costs particularly important in evaluating the economic implications of rent control. In an unregulated market, a housing shortage the reason usually cited for imposing rent control will be addressed in a two-step process. In the short-term, rents on the margin will rise as consumers compete for available units. Over time, these higher rents will encourage new investment in rental housing through new construction, rehabilitation, and conversion of buildings from nonresidential to residential use until the shortage of housing has been eliminate. Without the increased rents required to attract new investments, new housing contractions would be sharply limited and there would be no long term solution to shortage in housing. Conversely, a fall in rents sends the message to the market that there is no room for new investments.


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Nov 9th, 2015

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