Most economists agree a ceiling on rents reduces the quantity and quality of housing available. Rent control and rent stabilization, intended to make housing affordable to low-income families, have been known to lead to many unintended consequences. Also, there is evidence of possible reductions in supply resulting from a price cap, as owners have little incentive to maintain their properties or to build or fix up new ones. The resulting decline in supply aggravates the problem with an increase in prices, as demand outpaces supply.
Though this may justify the generally negative view many people have about subsidized housing, the problem of housing for the poor remains......more
- - Volume: 5 - WEEK: 9 Date: 3/2/2017 10:14:35 AM -