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Rent control, like all other government-mandated price controls, is a law placing a maximum price, or a rent ceiling, on what landlords may charge tenants. If it is to have any effect, the rent level must be set at a rate below that which would otherwise have prevailed.
Are rent controls good?
Why Rent Control Works. Neoliberals are wrong: rent control protects tenants, is good for the housing market, promotes lively cities, and reduces one of the biggest sources of rising inequality today. We need to expand it dramatically. Our new print issue, Political Revolution, is out now.
Why are rent controls good?
More recent research suggests that rent-control policies reduce rents for the tenants they target and provide additional benefits by increasing residential stability and protecting tenants from eviction. Although rent control may constrain housing supply, policies can be tailored to avoid this.
Does rent control actually work?
Rent control refers to a variety of ways in which the amount that landlords are allowed to charge may be limited. Standard economic theory is that rent control does not work, because if you force rents down, landlords may decide not to rent out their properties, which reduces the amount of rental property available.
Who benefits from rent control?
A manager of a rent controlled apartment usually also receives a significant tax benefit from the government. At the same time, the landlord is often receiving less income from the individual units.
What is an advantage of rent control?
Rent regulations help maintain diversity and stability in neighborhoods, which increase property values. Long-term tenants also materially improve and maintain properties and contribute to the preservation of buildings and the increase in property values.
Why rent control is bad?
Rent control can also lead to decay of the rental housing stock. Landlords may not invest in maintenance because they can't recoup this investment by raising rents. (Downs 1988, Sims 2007). Of course, rent control also offered potential benefits for tenants.
Does rent control help the poor?
The system does not help the poor. It particularly penalizes new Yorkers, who have always been vital to the city's economy. And it encourages landlords and tenants alike to behave in ways almost perfectly calculated to tighten the housing market still further and raise rental prices higher.
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