Rent Control Apartments Affect The Market

Some economists would argue the above mentioned examples of why rent control is harmful to

Rent control refers to laws that limit the amounts of rent and the amounts that rent can be increased in any year. There is no statewide rent control in the US, and all the rent control laws and regulation are passed by cities. Most of the cities with rent control are located in New York, California, and New Jersey. Washington, D.C. also has rent control.

In the book, Nickel and Dimed, Barbara Ehrenreich mentions the problem of rents is the market. When the market fails to provide necessary goods, such as affordable housing, we expect the government to step in and help. We decide to believe this, because, in the case of health care, the government offers Medicare to the elderly, Medicare to the poor, and many state programs to poor children. But, with housing, radical increases of the rental market has been followed by a retreat of the public sector.

When the recession happened, and the housing market crashed in Los Angeles a few years back many people lost their homes. The foreclosure crisis displaced many homeowners, drove up demand, and rental prices increased. Now, it is almost two years later, and the dramatic rent increases continue to soar. There would be no issue with cost of living increase except; the increases in income have yet to make the same shifts. “In many cities, rent is rising out reach of

This is a result of a demand shift to the left related to a lack of available tenants for the apartments. The property management company has to decrease rental rates allowing the quantity supplied to decrease as well (University of Phoenix, 2012), creating a downward swing in the supply curve. The price of rentals decreased to create less quantity that is available for rent creating equilibrium and a decrease in surplus. This is a difficult decision to lower price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

What is known about the dearth of inexpensive living spaces in high-cost, heavy populated areas is its scarcity is a function of supply. Demand remains a non-issue for policy makers as demand has

Those who argue in favor of rent control say that it is the only way to protect

The price of rentals decreased to create less quantity that is available for rent creating an equilibrium and decrease in surplus. This is a hard decision to lower the price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

In 2008, the American population saw a large wave of home foreclosures during the Great Recession that created an economic crisis that displaced millions of homeowners. Unable to recuperate from the terrible financial situation, these persons found comfort within the rental property industry. These previous owners, unable to purchase new homes, began renting property and living as tenants, contributing to the 4% growth record of the rental industry as published in a study that was conducted by Harvard University. With the growth of this industry, rental property owners began to devote more of their time to the development and marketing of their rental properties. These owners began providing lower rates for their properties, and they began making improvements that allowed them to increase the net profit that they received. With the continual “boom” of the industry and the popularity that it is receiving due to young adults needing places the live, rental property owners need an effective program that allows them to oversee their properties and communicate with their tenants.

New York City is one of the places that has rent stabilization. If you were a middle class working individual looking for a place to live it might be more difficult than you would have thought. The rent control policy in simple terms is that the government has set limits on how much a landlord can charge for rent. This policy was intended to lower prices and balance out the control between residents and landlords so that tenants with lower wages can housing. Although this policy does have positive aspects, there are many unintended consequences as a result. Since there is a control on how much a landlord will charge, many of these rentals have lower-quality living conditions. There is also a problem with availability because many rentals already

There are lots of benefits brought by the rent control after it was adopted. First of all, the rent control lowers the rent, so that the rent apartments have become more affordable for the public, especially for poor and working people. One statistic that may help with this statement would be the journal published by Gerard Mildner and Peter D. Salins in 1991, they stated that the normal apartment renting price was about $180 in 1975 because of the rent control. 12 years later, which is 1987, the rent price increased to around $400 due to the inflation. We can see from the data that the rent went up for about 130% in 12 years. However, the consumer price in general only rose 105%. (City Journal) Therefore, instead of only maintaining the current rent price, the rent control also helps to prevent

It is argued that rent needs to be related to cost of living. By using this argument, it becomes such an important issue it cannot be left to the unfair marketplace. ​

Second, Airbnb’s business reduces the aggregate supply of housing. Property owners tend to rent their units

Hi Melissa, I agree with your analysis, I think people want to have convenience and as well as happiness. People that rent their homes are making extra money which help them to pay their bills. From the utilitarians and libertarians point of view the ban on Airbnb company is injustice. According to Rawls people in the original position should imagine their selves behind the veil of ignorance while choosing the principles and must also think of not only income and wealth but also rights, liberties, opportunities, status, and self-respect of the affected society. (Shaw, 2016, p.122-123).

This shows that there is huge opportunity for Urban Shades to enter into London Student