Rent control from "summary" of Economic Facts and Fallacies by Thomas Sowell
Rent control is a policy that sets limits on how much landlords can charge for renting out their properties. This is often done with the intention of helping low-income individuals afford housing in expensive cities. However, the unintended consequences of rent control can be severe. One of the main problems with rent control is that it reduces the incentive for landlords to maintain and improve their properties. When landlords are unable to raise rents to cover the costs of repairs or upgrades, they may neglect their buildings, leading to deteriorating living conditions for tenants. Additionally, rent control can create shortages in the housing market. When landlords are not able to charge market rates for their properties, they may be less inclined to rent them out at all. This can lead to a decrease in the supply of rental housing, making it even harder for individuals to find affordable places to live. Another issue with rent control is that it can lead to discrimination in the housing market. Landlords may prefer to rent to tenants who are less likely to stay for a long time, such as students or young professionals, rather than families or older individuals who are more likely to stay in a rent-controlled unit for an extended period.- While rent control may seem like a solution to the problem of expensive housing, it ultimately creates more problems than it solves. By distorting the housing market and creating unintended consequences, rent control can end up hurting the very individuals it was intended to help.
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