In cities with rent controls,the actual rents paid can be ________ than the legal maximum.One explanation for this is because there is a ________ of apartments,tenants are ________.

Question

Quizplus · Accepted Answer

Rent controls create a shortage of apartments because landlords have less incentive to build or maintain rental units when they cannot charge market rates. With a limited supply of apartments, tenants may be willing to pay rents higher than the legal maximum in order to secure a place to live. This drives up the actual rents paid, even though the legal maximum is lower.

In Cities with Rent Controls,the Actual Rents Paid Can Be