Why do governments go this direction when it causes so many problems?
In a market economy, which includes both housing construction and home rentals, price is the signal by which demand is measured. Rent control either eliminates or severely distorts that signal.
I’m going to predict that:1) fewer new homes will be constructed and 2) rents will sky rocket where it’s possible (tenant turnover).
In a market economy, which includes both housing construction and home rentals, price is the signal by which demand is measured. Rent control either eliminates or severely distorts that signal.
I’m going to predict that:1) fewer new homes will be constructed and 2) rents will sky rocket where it’s possible (tenant turnover).