When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that ap

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3 years ago

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When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that ap

ply. The future supply of rental housing units increases. The quality of rental housing units falls. The quantity of available rental housing units falls. Efficient use of housing space results.

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1 answer:

Strike441 [17] · Answer 1 · 2022-02-07T19:41:42+03:00

Answer:

The quality of rental housing units falls.

The quantity of available rental housing units falls.

Explanation:

When landlords are compelled to rent out housing units for less than the market price there is reduction in the e amount the landlord is willing to spend on maintenance. This will result in low quality houses as renting is not lucrative enough for them to put in the effort of good maintenance.

There is also a decrease in the number of available house rental units. Landlord will either find other uses for the property that pays more resulting in less units available for people that want to rent, or they will withhold the houses from the market till clients resort to black market practices where they will pay high prices under the table for property rent.