Question

Economists widely agree that Rent Control and Rent Ceilings are very unfavorable to use.

This brings us to the question, what are 5 better policies that could improve access to housing for low-income households? Please give support for each of your listed policies.

Answer 1

The policies that could help access affordable housing to poor are

Providing tax incentives to landlords: this would encourage the landlords to increase the supply of rented apartments to lower income groups if they are being incentivised for it.

Subsidies and vouchers: The government can subside or provide vouchers to provide affordable renting and housing. This would ensure that the weaker sections of the society get the houses.

Public housing: instead of rent control , the government can provide public houses to the poorer sections of the society.

Direct payment: the government can directly pay to the poor sections of the society which could be used for specific purposes like housing.

Zoning: the government can supply apartments for rent at particular areas by itself from its public funds. These help migrants have affordable housing.

All these have less deadweight losses than in case of rent controls.