Rent control is a price ceiling on the rent that landlords are able to charge their tenants. The main goal is to help the poor be able to afford housing costs. There are many states around the US where rent control is prohibited. Normally, it is seen in big cities that have high-paying jobs and a large population. It is mentioned in the article that rent control is seen in areas of New York, California, and New Jersey. There are many different opinions on the idea of rent control. Economists see it as inefficient and a good way to ruin a city in terms of quantity and quality of leased buildings. California has recently seen an increase in high-paying jobs which in turn causes rents to increase. One in five people live in poverty in California, this may be due to the expensive living options. As a matter of fact, California’s median home price is double that of the national average. Many residents and tenants are striving towards approval by voters to implement rent control. The increase in homelessness creates the opportunity for …show more content…
These struggles could take years to become apparent to the residents. In the short run, there may be no obvious effects because the supply, as well as demand, is inelastic. Specifically, it could be difficult for landlords to change the number of rentals at first. Tenants do not have options for living arrangements, therefore there will not be much of a change in demand. This new price ceiling will also create a small shortage because supply and demand are both relatively inelastic. Inelasticity comes from the fact that neither side is able to react to market conditions because individuals take time to respond to changes in housing arrangements. If rent control was to be enacted in California, tenants would see the benefits of the lower price without the landlord having the ability to change