Rent controls lead to:

Question

Quizplus · Accepted Answer

Rent controls typically set a maximum price landlords can charge for rent, which is often below the market equilibrium price. In the short run, this leads to a small shortage of housing as demand increases due to lower prices, but supply cannot adjust immediately due to the fixed nature of housing. In the long run, the shortage becomes larger as the disincentive for landlords to maintain or create new rental properties reduces the overall supply of housing.

Rent Controls Lead To