The Effects of Rent Control Policies and Standard Supply-and-Demand Theory

The Effects of Rent Control Policies and Standard Supply-and-Demand Theory On the surface, rent control appears to be a very feasible solution to assist people in finding housing during hard times. It sounds simple; instate laws to ensure that rent does not exceed a particular value, and housing is kept affordable. However, the economic consequences of such a policy can be far-reaching and severe. William Ticker's Policy Analysis, How Rent Control Drives Out Affordable Housing …

…one can show that rent control disrupts the natural functioning of the economy. Data from all over the United States supports the theory. As long as rent control policies exist, so will shortages, shadow markets, black markets, and other various alternative markets. Works Cited Tucker, William. "How Rent Control Drives out Affordable Housing." Cato Policy Analysis 274 (1997): pp1-15. 23 Oct. 2003 <http://www.cato.org/cgi-bin/scripts/printtech.cgi/pubs/pas/pa-274.html>