Question

What is the problem that rent control attempts to solve?

That is, what are the goals of rent control? Why does a pure price control fail to solve the problem?

Please discuss two of the alternative solutions to the problem. Which one of the two is superior, in your opinion? Why?

4. In your opinion, what should be done about the fact that in many years, the price of rental housing rises faster than the ability of many families to pay for this rise in housing costs?

Answer 1

Rent control is a government program that places a limit on the amount that a landlord can demand leasing a home or renewing a lease Rent control law are usually enacting by municipalities and the detail vary widely. All are intended to keep living costs affordable for lower-income residents.

In a 2019 study by the Urban Institute, 182 municipalities in the U.S. have rent control regulations, and all of them are in New York, New Jersey, California, Maryland, or Washington, D.C. In fact, 37 states have laws that forbid local governments from enacting rent control measures. However, the issue of rent regulation has been revived in recent years, particularly in cities and states where spiraling costs of living combined with stagnant wages have created a housing affordability crisis for moderate-income residents and elderly people on fixed incomes.

Most rent control laws limit the amount that a landlord can increase rents on existing tenants.

Rent control is controversial. In fact, 37 states have laws that forbid local governments from enacting such measures.

Oregon became the first state in the U.S. to enact a statewide rent control law in 2019.

4.

Rental prices in many U.S. cities are rising far faster than wages for moderate-income jobs.Rent control enables moderate-income families and elderly people on fixed incomes to live decently and without fear of a personally catastrophic rent hike.Neighborhoods are safer and more stable with a base of long-term residents in rent-controlled apartments.

Rent control reduces the supply of decent housing, as landlords would rather convert a building to condos or adapt it to commercial use than abide by a law that limits their profits.

Investment in new rental housing screeches to a halt.

Maintenance of buildings under rent control is lax or nonexistent because of the poor return on investment for landlords