Asked by Amrita Tambar on May 27, 2024
Verified
The effects of rent control in the long run include lower rents and lower-quality housing.
Rent Control
Government-imposed limits on the amount landlords can charge tenants for lease agreements, aimed at making housing more affordable.
Long Run
A period of time in economics during which all factors of production and costs are variable, allowing companies to adjust to market changes fully.
- Assess the immediate and enduring impacts of rent control on real estate markets.
Verified Answer
TM
Talal MahmoodMay 27, 2024
Final Answer :
True
Explanation :
Rent control can lead to lower rents in the short term but often results in lower-quality housing over the long run because landlords may not have the incentive or resources to maintain and improve properties when their rental income is artificially capped.
Learning Objectives
- Assess the immediate and enduring impacts of rent control on real estate markets.