What Are the Economics of Rent Control?
Rent control is the government regulation of housing contracts in areas of high rents. It is designed with the purpose of lowering such rents in order to make them affordable for the majority of people. Despite such advantages, such policies also have disadvantages, which may include artificially high rents and negative impacts on housing investment.
Rent Control
Rent control policies vary by location, however, they are mostly found in areas where prices tend to be higher, such as cities. Policies may include regulations regarding rent stabilization, where a landlord is not allowed to raise rent above a given percentage within a given time frame. Policies may also have stipulations regarding the amount of time a tenant may rent the property. Often, if a tenant has adhered to the rules stipulated in the lease, he cannot be evicted. In some cities, tenants may stay indefinitely, whereas in others, they may stay for a minimum length of time.
Advantages of Rent Control
Rent control policies are set out with the aim to reduce the prices of rent within a city. While it is true that many people would be able to afford housing that is leased at market value, others may find it difficult or unfeasible to afford such prices. A city's economy is made up of people in many different professions, and even the lowest paying professions are critical if an economy is to run smoothly. For example, although teachers may be paid at a relatively low rate in comparison to other professionals, they are still in great demand.
Disadvantages: Effects on Initial Prices
As landlords are unable to specify the departure date for a tenant, a landlord does not know when a tenant may move out of an apartment. A tenant may theoretically stay in the apartment until a time when she is paying rent that is substantially below the current market rates. As a result, landlords, when setting up a new leasing contract for new tenants, may stipulate rent at an artificially high price that is above the current market rate. This is done in order to make up for any loss of rent-derived income in the future. As a result, rent-controlled apartments may actually be higher in rent than those of non-rent-controlled apartments.
Disadvantages: Effects on Investments
Rent control is said to have a negative influence on the investment of housing. This may include new buildings as well as the renovation of old buildings. Various studies have found that, once rent control regulation is removed, there has been a boom in new housing investment. This is because, under times of rent control, landlords and building owners are unsure if they would be able to recoup the costs associated with building investments if rent rates remain artificially low. Thus, there remains a long-term effect of a decrease in building quality.
Economics - Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/EconomicsEconomics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient
Enterprise Rent-A-Car: Minivan rentals, pickup truck rentals ...
www.enterprise.com/car_rental/showVehicles.doEnterprise Rent-A-Car offers a wide selection of rental cars. Reserve online and choose from economy and luxury rental cars to minivans, SUVs, pickup trucks and cargo ...
How Rent Control Drives Out Affordable Housing
www.cato.org/pubs/pas/pa-274.htmlExecutive Summary. Rent control has been in force in a number of major American cities for many decades. The best-known example is New York, which still ...
Economics in One Lesson, The Lesson Applied, What Rent Control
steshaw.org/economics-in-one-lesson/chap18p1.htmlEconomics in One Lesson by Henry Hazlitt The Lesson Applied What Rent Control Does
Rent control - Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/Rent_controlRent control refers to laws or ordinances that set price controls on the renting of residential housing. It functions as a price ceiling. Rent control exists in ...
Peer-to-peer rental: The rise of the sharing economy The
www.economist.com eBay Free exchange: Ad scientistsThis site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Review our cookies information for more details
Lowcost RENT A CAR - Economic cars for rent in UAE
www.lowcostcardubai.comLOWCOST RENT A CAR Special offers on most of our cars you can reserve now a car starting from AED 53
economics - definition of economics by the Free Online
www.thefreedictionary.com/economicseconomics (k-n m ks, k-) n. 1. (used with a sing. verb) The social science that deals with the production, distribution, and consumption of goods and services ...
Rent Control in New York City - EzineArticles.com
ezinearticles.com Legal National State LocalFeb 27, 2008 Throughout this essay, I will expound on the background of Rent Control in New York City; the debate/controversy over Rent Control in New York City ...
Global History @ LSE Blogging Global History from the London ...
globalhistoryatlse.wordpress.comBlogging Global History from the London School of Economics (by Left Outside)
San Francisco Tenants Union
www.sftu.orgNon-profit organization fighting for the rights of tenants and the preservation of affordable housing in San Francisco.
Consumer Price Indexes for Rent and Rental Equivalence
www.bls.gov/cpi/cpifact6.htmConsumer Price Indexes for Rent and Rental Equivalence. Rent of primary residence (rent) and Owners' equivalent rent of primary residence (rental equivalence) are the ...
Economics Essays: The Economy of the 1970s
econ.economicshelp.org/2010/02/economy-of-1970s.htmlGraph showing combination of high inflation and volatile output. Barber Boom 1970-73 The early years of the 1970s, were a period of rapid economic growth.
Behavioral Economics: The Concise Encyclopedia of Economics ...
www.econlib.org CEE 2nd editionHow Behavioral Economics Differs from Traditional Economics . All of economics is meant to be about peoples behavior. So, what is behavioral economics, and how ...
The Circular Flow of Economic Activity - Upload & Share
www.slideshare.net/gar_dev/the-circular-flow-of-economic-activityMar 31, 2009 The Circular Flow of Economic Activity Presentation Transcript. THE CIRCULAR FLOW OF ECONOMIC ACTIVITY INTRODUCTORY MACROECONOMICS
Rent Control 2: The Argument for Rent Control - YouTube
www.youtube.com/watch?v=q6dusBlA0zEProfessor Stephen Hicks presents the arguments pro and con about the ethics, economics, and politics of rent control. Recommended Supplemental Readings ...
Enterprise Rent-A-Car Canada: Car Rental, Economy Cars,
www.enterpriserentacar.ca/car_rental/showVehicles.doEnterprise Rent-A-Car in Canada offers a wide selection of car rentals, including everything from economy and luxury cars to pickup trucks and cargo vans.
News and information about Economy - Business - NBC News.com
www.nbcnews.com/business/topic/economyNews, videos and photos about Economy - Business - NBC News.com
rent: Definition, Synonyms from Answers.com
www.answers.com Library Literature & Language Dictionaryrent n. Payment, usually of an amount fixed by contract, made by a tenant at specified intervals in return for the right to occupy or use the property
Economy Equipment Rental - econrent.com
www.econrent.comEconomy Equipment Rental. We are open 7 days a week and have 2 locations to choose from, Anaheim & Los Angeles. Our Anaheim store is located at 1771 W.
International Economics Glossary: R - U-M Personal World Wide
www-personal.umich.edu/alandear/glossary/r.htmlRace to the bottom The idea that, if one country provides a competitive advantage to its firms by lax regulation (of the environment, for example), then competing ...
Enterprise Rent-A-Car in Canada: Minivan Rental
www.enterprise.com/car_rental/deeplinkmap.do?bid=1530&xparam=...Enterprise Rent-A-Car offers a wide selection of vehicle classes to choose from in Canada, including minivan rentals, pickup trucks, economy cars, luxury cars, SUVs ...
0 komentar
Posting Komentar