Rent control By JohnCrane

What is rent control? Laws or ordinances that set price controls on residential housing. Controls the price for tenants that are living in a place by making the price a set amount. Establishes a price ceiling.

Price Ceiling Is a government-imposed limit on how high a price can be charged on a product. This is bad for an economy because it causes a shortage in supply and creates an increase in demand. It moves us away from a capitalist economy and more towards a socialist economy. Example. Minimum wage laws create a surplus of labor.

When did rent control start? It can be seen in the United States after world war 2. Solders returning home could not afford to pay for housing so the government established rent control in New York city. Rent control is still in place in New York

Places where rent control in in effect. Rent control is usually left up to the state or local government It is in effect in many major cites such as… New York city, San Francisco, and Washington D.C.

How can rent be increased? If rent control is in effect rent can only be increased by the rate of inflation Rent can also be increased if capital improvements are made on the apartment or house.

Effects on the housing of rent controlled units Rental units that are under rent control can turn into slum apartments and housing. There is little incentive for landlords to maintain these buildings because of cost/benefit ratio.

Summary Rent control is bad ? Rent control is good?

Works Cited