Identify 4-5 U.S. cities that have rent control (price ceiling). Discuss the specific policy each city...

Identify 4-5 U.S. cities that have rent control (price ceiling). Discuss the specific policy each city has in place, the purpose of the policy, and for how long it has been in effect. Analyze the effects of each policy. Use the demand and supply model to illustrate your analysis.

Expert Solution

* Rent control is a government program that places a limit on the amount that a landlord can demand for leasing a home or for renewing a lease.

* New York, New Jersey, California, Maryland, or Washington D.C. in U.S have rent control.

* In New York City, rent control is based on the Maximum Base Rent system. A maximum allowable rent is established for each unit. Every two years, the landlord may increase the rent up to 7.5% (as of 2012) until the Maximum Base Rent is reached.

* State law regulates several rent-related issues, including late fees, the amount of notice (at least 30 days in New Jersey) landlords must give tenants to raise the rent and how much time (30 days in New Jersey) a tenant has to pay overdue rent or move before a landlord can file for eviction.

* In California, Rent Control in the narrowest sense traditionally referred to city or county ordinances that limited the rent landlords could charge. (Popular perceptions of rent control include restrictions on evictions, as explained below.) Rent control laws typically specify a maximum percentage by which landlords can increase rent (for example, 5%) along with corresponding limits on the frequency of increases (typically once annually). Sometimes the rate by which landlords can increase rent is expressed as a percentage of the annual Consumer Price Index (CPI).

Rahul Sunny answered 3 months ago

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