Rent controls lead to housing shortages.

Question

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When rent control policies are implemented, landlords may be less willing to supply rental units since they are unable to increase rent with market demand. This leads to a shortage of available housing, as landlords may choose not to build new units if the potential profit is limited. Additionally, existing landlords may choose to convert their rental units into condos or other forms of housing that are not subject to rent control regulations.

Rent Controls Lead to Housing Shortages