The textbook suggests that rent controls
A) actually contribute to the housing boom in an area where they are applied.
B) actually contribute to the housing shortage in the area where they are applied.
C) are used in a government kickback scheme.
D) have no effect on the local housing market.

Question

Quizplus · Accepted Answer

Rent controls create a disincentive for developers to build new units because they cannot charge market rate rents, leading to a shortage of available housing. This can also lead to a deterioration in the quality of housing as landlords have less incentive to maintain or upgrade their properties.

The Textbook Suggests That Rent Controls