Following a major natural disaster that destroys housing,a rent ceiling ________ be an effective policy to increase the quantity of more affordable housing for displaced residents because it would ________.

Question

Quizplus · Accepted Answer

A rent ceiling would put a price cap on how much landlords can charge for rent, which would discourage rebuilding and result in a shortage of available housing. Landlords would have little incentive to rebuild or maintain existing housing if they cannot charge market rates for rent, and therefore there would be fewer housing options available for displaced residents.

Following a Major Natural Disaster That Destroys Housing,a Rent Ceiling