Housing shortages caused by rent controls are larger in the long run because the supply of housing is more elastic in the long run.

Question

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Rent controls, by setting artificially low rental rates, reduce the incentive for landlords to continue renting out their properties, and for new investors to build new structures. In the short run, housing supply may not be affected drastically, but over time, as landlords exit the market and new investors are discouraged from entering, the overall housing supply becomes less elastic, causing more significant shortages in the long run.

Housing Shortages Caused by Rent Controls Are Larger in the Long