Which of the following would likely result as a consequence of rent controls?
A) a reduction in the rate of construction of rental housing units
B) unimproved buildings and apartment complexes
C) limits on tenant mobility
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Rent controls typically result in a reduction in the rate of construction of rental housing units because they reduce the incentives for developers to build new rental housing units. This is because rent controls limit the amount of rent that can be charged, which reduces the amount of revenue developers can earn from rental units. Rent controls can also lead to unimproved buildings and apartment complexes because landlords are less likely to invest in maintenance and upgrades if they can't charge higher rents to offset the cost. Additionally, rent controls may limit tenant mobility because renters are less likely to move if they can't find comparable rental units at the same price due to rent controls.

Which of the Following Would Likely Result as a Consequence