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

Question

Quizplus · Accepted Answer

Rent controls discourage new housing construction because landlords are less likely to invest in building new rental properties if they cannot charge market rates. This results in a decreased supply of rental housing, which ultimately drives up rents in the long run.

Rent Controls Create Distortions in the Housing Market By