Question

Who gains and who loses from rent​ controls?

Answer 1

Rent controls are the government regulations which make it illegal to charge more than a particular rent for housing and the rent controls can be said that as a form of price ceiling.

Rent controls are benefited to those people such as,

• People having middle and upper income with better credit.
• People those who are better connected with better access to the market information.
• Those people who are in possession of skills valued by landlords.
• People who are older, more established, less transient and long term in nature.

Rent controls causes loses to the people such as,

• Landlords
• Consumers
• People those who are new to the community and more transient.
• People with lower income and with no or poor credit
• Taxpayers those who bear the cost of enforcing the rental housing ordinances.