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Econ 101 says that rent control (in effect a price ceiling) just results in scarcity (people are unable to get ANY housing), rather than actually reducing the c
by JTbane 5y ago
Econ 101 says that rent control (in effect a price ceiling) just results in scarcity (people are unable to get ANY housing), rather than actually reducing the cost of housing.
- Enginerrrd 5y agoI'm not sure why you're being downvoted. This is the theoretical prediction based on simple microeconomics. By example, I believe NY rent controls were ineffective to the point where rents outside of controlled areas went higher than they otherwise would have and within rent control areas there was (and is) scarcity of housing.
- Rebelgecko 5y agoIt also exacerbates other problems that go hand in hand with urban areas, such as traffic. Most people would rather stay in their rent controlled apartment and drive an hour to work instead of having to move and pay the current market value