The cost of rent control

effects of rent control in the long run

In an unregulated market, this consumer selection process will be governed by the level of rents. More generally, removal of inappropriate regulatory barriers to housing construction promotes housing affordability for both renters and home owners.

Apartments will be turned into condominiums. Rent-control systems under which landlords can evict tenants only with good cause i. So the story Krugman read the day before reflected the effects of incomplete knowledge and economic uncertainty rather than the effects of rent control.

Rent control can provide tenants with stability and fair rents in cities where the rental housing market is unable to stabilize rents on its own.

Some inland locations are surrounded by flat, easily buildable land in all directions. Maintenance is not a direct response to the amount of rent paid but rather to the differential between the rent that can be obtained for well-maintained versus poorly maintained rental housing.

But then, they pay a price because it's going to take them longer to rent out the apartment. Rent Control: The Perennial Folly. House rents had … been kept low … so all the houses in Hanoi had fallen into disrepair, said Mr.

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What does economic evidence tell us about the effects of rent control?