The objective of rent controls is to
A) ensure an adequate supply of rental housing for the poor.
B) keep rents below levels that would be observed in a freely competitive market.
C) encourage the construction of new rental units.
D) raise revenue for the local government.

Question

Quizplus · Accepted Answer

Rent controls aim to limit the rental rates that landlords can charge, which keeps rents below the market rates that would result from supply and demand forces. This is meant to protect tenants from high rental costs and prevent displacement due to gentrification. However, rent control policies can also have unintended consequences, such as reducing the quantity and quality of available rental housing, discouraging new construction, and leading to long waiting lists for affordable units.

The Objective of Rent Controls Is to