Rent controls create distortions in the housing market by:
A) increasing the supply of housing in the long run.
B) raising property values.
C) encouraging landlords to overspend for maintenance.
D) discouraging new housing construction.

Question

Quizplus · Accepted Answer

Rent controls discourage new housing construction because landlords may not want to invest in building new rental properties under the limits of rent control. This can lead to a decrease in the overall supply of rental housing, making it more difficult for tenants to find affordable housing.

Rent Controls Create Distortions in the Housing Market By