The degree to which rent controls affect the market for apartments depends on

Question

Quizplus · Accepted Answer

Rent control policies will have a greater impact on the market for apartments when both supply and demand are relatively elastic. If supply is inelastic, landlords may not have the incentive to maintain or improve their properties, leading to a decrease in the quality of available units. If demand is inelastic, tenants may be willing to pay higher rents or willing to stay in cramped or substandard conditions, making rent control less effective in improving the overall housing situation. Therefore, both supply and demand elasticity should be considered when evaluating the effectiveness of rent control policies.

The Degree to Which Rent Controls Affect the Market for Apartments