The housing shortages caused by rent controls are larger in the long run than in the short run because both the supply of housing and the demand for housing are more elastic in the long run.

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In the short run, the supply of housing is less elastic because it takes time to build additional housing units. In the long run, however, developers have more time to respond to changes in the market and can increase the supply of housing more easily. Similarly, in the long run, tenants have more time to adjust their rental habits and may be more willing to move if their housing costs become too high. As a result, the housing shortages caused by rent controls are more significant in the long run than in the short run.

The Housing Shortages Caused by Rent Controls Are Larger in the Long