Rent controls are always efficient in helping the poor and negatively impacting the wealthy.

Question

Quizplus · Accepted Answer

Rent controls may provide short-term relief to some low-income individuals by reducing the cost of living, but they often lead to reduced investment in housing, diminished supply, and poorer quality housing in the long run. This can negatively impact both low and high-income households, as rent-controlled units tend to be of lower quality and poorly maintained. Additionally, rent controls may discourage new housing development, limiting the amount of affordable housing available in the long run. Therefore, rent controls are not always efficient in helping the poor and can negatively affect all individuals in the housing market.

Rent Controls Are Always Efficient in Helping the Poor and Negatively