New York City (and other locations) has had laws regarding Rent Controlled Apart
ID: 1154185 • Letter: N
Question
New York City (and other locations) has had laws regarding Rent Controlled Apartments of some city apartments. Research the political and social reasons for implementing rent Control laws. Then, using YOUR own words, explain the economic theory and consequences of rent Control laws. Use specific facts, economic impact on demand, supply and price, and the outcomes of the laws. How have these laws improved (or worsened) economic conditions? Use appropriate economic terminology in your answer.
Please write from scratch.
Explanation / Answer
New York City - Rent Controlled Apartments
It guarantees tenants minor price hikes over the years. The neighbourhoods that have exploded in real estate value, have increased in value tremendously. The long-term trend is towards zero rent-controlled apartments. A rent-controlled rent-stabilized apartment, when vacant, or, the number of units less than six units, is removed from regulation. The total number of units has decreased as units are deregulated, or, stabilized. Only one per cent of the apartments in the UK are rent controlled.
Political & social reasons -rent control laws
It generates political, and, legal controversy. It was introduced during the World War I. Tenant welfare is a Governmental goal. Social policy is to preserve for, middle-income, and, low-income families, affordable low-cost housing. The second is to prevent hardship associated with the housing that is not secure, and, stable.
Economic consequences
Government control is a form of price control. It is imposed as the supply of housing is elastic. Supply is low, even if the rent is increased. Governments protect tenants from exploitation. It does not harm the tenants but prevents wasteful use of space.